""",,..: r~lfC+';;""'"" i ~~ .. ... "" j~ ~..:i< t \ •• ';Hr r"]rG'f<;&" "",,,.~,,,,j~"",," t-.:.:-.~~:~:.:..~:::: ~. 'd'<~ ::s . ",~w.,'.: .~) \ ': .,';,.;.,.~."'" .. """",*-""",,~ A,"" N~.. : < y'~ ":::.::::.' ."'~~N' . ;.. f;~: ..".' \~.,'" .,..... :,'" .; '* F' ,All! , R~«'M"""~ " ... ,'" :,., " _.•••. :","" .:. ~ ~ _..J .", ~' .: . ' N.• 'E ..~' "lfS' .~. _$ ~ 't \ t MICHIGAN FARItI BIJREAIJ Apri I 30, 1996 -= Vol. 73, No. 8 Monsanto Roundup-Ready soybeans gaining- international approval T wo key approvals for importation of Roundup- Ready soybeans imo Europe and Japan should help to alleviate a great deal of the domes- tic comroversy surrounding acceptance of the soybeans here in the U.S. by major exporters. The European Commission has officially cleared the way for the Roundup-Ready soybeans to be imported and marketed in the 15 member countries of the European Union (Ell). The decision, which is binding on all EU coumries, says that because Roundup-Ready soybeans are as safe as other soybeans, they can be handled like all beans without segregation or labeling. The EU decision covers imported soybeans only, since there was not a request submined for plaming Roundup-Ready soybeans in Europe, according to a Monsanto press release. Regulatory approval to allow importation of whole Roundup-Ready soybeans imo Japan was also granted on Aprill, by the Japanese Ministry Construction Helicopters, Inc., based out of Ypsilanti, Mich. made quick work in lifting two new grain cleaners, of Agriculture, Forestry and Fisheries (MAFF). in 6-foot sections, to the top of the Grand Ledge Agri-Sales facility. The Sikorsky S58-T is capable of lifting a Under the Japanese approval, Roundup-Ready maximum of 5,000 pounds. The newly installed cleaners, custom built by Johnson System Inc., are each rated soybeans can be imported, and cultivated as at 15,000 bushels per hour, and will be added to the company's product line and services. well in that coumry, based on a safety evaluation conducted by MAFF's Evaluation Comminee. 1\vo additional approvals allowing for con- sumption of the beans are still needed in Japan. Food safety approval is expected this summer, Property owner opposition COVER; S10RY oward Johnson, of Johnson System followed by feed approval expected sometime prior to harvest. puts Upper Peninsula power Inc., had a dilemma when figuring out how to replace two worn-out drag flite According to MFB Commodity Specialist Bob Boehm, the EU's decision that "products line project on hold scalper grain cleaners perched on top of a 2.5 mil- lion-bushel concrete storage facility at the Grand containing modified soybeans do not require labeling" is significam for U.S. producers. "The labeling issue is important because it recognizes that it's not possible to idemify the modified wybeans or their componems," Boehm F or Delta County cow-calf operator and self- employed architect David Hayes, his ideal home was to be built on a bluff overlooking the 200 acres he and wife, Lenore, and four children Wis., is installing a 138,000-volt power transmission line in a joint project ,vith Upper Peninsula Power Co. and the Edison Sault Electric Co. The project in- cludes a major upgrade of an existing substation in Ledge Agri-Sales facility. What's the quickest and easiest way to lift just over 25,000 pounds of grain cleaners and accessories to the top of a cluster of 155-foot -tall grain silos and still be able to reach in call home. Manistique, construction of new electrical switching about 100 feet to position them? explained. "In other words, when the Roundup- Unfortunately, after a year and $50,000 into stations near Arnold and Perkins, and the transmis- "We could have done it with a large crane, but Ready soybeans are mixed with regular soybeans building his dream home, it appears that spectacu- sion line to connect the switching stations with a new the setup of the crane and the speed with which it they remain anonymous." lar view will also include a 138,OOO-voltpower trans- substation near Chandler. The project was supposed could have been done would have been costly," Individual EU countries may still pursue la- mission line just 90 feet from the building site. Why? to have followed an existing pipeline right-of-way. Johnson explained. The solution turned out to be beling requirements but trade experts suggest they To have the line rerouted 438 feet farther away Approximately 50 miles of the 80-mile project Construction Helicopters Inc., ofYpsiiami. would be on very tenuous legal grounds. More- would have cost him $7,000; 800 feet farther would have hit a snag, however, with four townships with- The scalper cleaners, custom-built by Johnson over, the three coumries that voted against the EU have cost him $70,000. drawing their support for the power line project System, were built in six-foot sections, each averag- agreemem - those most likely to pursue the label- Farther along the proposed power line until an agreement is reached on the routing. Ac- ing 3,600 pounds, that could be lifted to the top of ing issue - represent a very small percentage ofthe project, the corridor is conveniently diverted to a cording to Miller, when the project was oriSinally the silos and bolted together for quick and easy demand for soybeans relative to the total EU mar- railroad right-of-way to avoid crossing two federally proposed, Wisconsin Electric had suggested follow- assembly. ket, says Boehm. "Although we may hear periodic designated wild and scenic rivers in the Hiawatha ing three possible existing corridors, either a gas According to Jim Russell, project coordinator rumblings about labeling in the next few months, National Forest and to avoid "associated require- pipeline, oil pipeline or a railroad. He claims that for Construction Helicopters, the chopper is capa- such talk will represent little, if any, real substance mems and restrictions concerning adding new visu- townships voted to support the project regardless ble of lifting a maximum of 5,000 pound'i. The com- and should be viewed accordingly," he said. al impacts to rivers that are so designated," accord- of the corridor followed. pany specializes in construction "lifts" of all sorts, Continued on page 3 ing to Rod Miller,Wisconsin Electric principal repre- "Atthe time they (the townships) issued their including air conditioners for all of the K-Mart and sentative of state relations. resolutions of support, there was no distinction on Walmart stores and shopping malls, and duct work An 80-mile power line project in the Upper their part over whether or not one route would be on factories, throughout Michigan, Ohio, Indiana Peninsula has pitted landowners and four townships acceptable or unacceptable," Miller said. "There was and the East Coast on occasion. against a power company to get the project halted. a general agreemem that all three routes appeared to "We can save contractors quite a bit of time While most property owners readily agree the be reasonable and that they would support all three." and money because we're so much faster, and we project is needed, many are angered by the arro- Local property owners, however, say other- can get to places a crane just wouldn't be able to," gant attitude and the apparent double standards wise. "When Wisconsin Electric approached Ensign Russell explained. "We take a three-man crew with exercised by Wisconsin Electric on the routing of Township, they showed a map of the power line liS - a pilot, mechanic and myself." the power line. going through forested land," comends Christine What normally would have been an all-day job Wisconsin Electric, based out of Milwaukee, Continued on page 12 Continued on page 3 1~'jl~~'~'I~ April 30, 1996 opportunities to educate your neighbors and friends about the farm-to-retail price spread, and the fact that the cost of labor, transportation, pack- aging, advertising, etc., has a greater impact on the Wheat crops to be How does $4 corn price of food (especially food eaten away from destroyed in two equate today? states - Cost to reach home) than does the cost of corn, soybeans and meat. When you hear someone complain about over $19 million W ith corn prices reaching record levels over the last couple of weeks, people outside the agricultural community think farmers are get- their grocery bill, you might also point out that a lot of what fills a typical grocery cart - the alumi- num foil, the shampoo, the kitty litter - isn't food. T he government is ordering the destruction of approximately 4,000 acres of wheat in Ariwna and Texas because the crops were found to be in- ting rich. That's just not so, according to the York, Neb. News limes newspaper, which says nearly 95 Remind people that they are lucky to live in the percent of farmers already contracted last year's fected with the karnal bunt fungus, according to the United States, where we spend 10 percent of our harvest and, even with the 5 percent or so remain- Agriculture Department. income on food, and not in India, where the'figure ing, it would take a lot more S4 corn to cover high USDA said some of the growers' losses may be is 53 percent. input costs. covered at the rate of $300 per acre. However, these You may also want to explain that the new Central Nebraska corn farmer Wes Eberspach- From the farm legislation opens agriculture more fully to t~e payments may prevent farmers from collecting crop er said in a News limes story that in 1974 - the last insurance payments. President ups and downs of the free market, and that farmers In total, USDA estimates that it will spend time corn reached the $4 level - a farmer needed can't be expected to survive the lean years if they to sell 8,750 bushels to buy a new combine. A simi- $8 million to compensate producers for destroyed are not permitted to make a little money during a lar purchase in 1996 would require a farmer to sell Ominous rumblings more prosperous year. wheat acres, and another $11.5 million evaluating 31,250 bushels. A top-{)f-the-line Chevrolet car and containing the karnal bunt outbreak. In Ariwna about food prices A second reason we should be concerned alone, USDA plans on having 70 employees working could be purchased in 1974 With profits from 1,375 I 've noticed the news media has started doing a about a food price scare is the political impact. We bushels of corn, but Eberspacher said a 1996 Chev- on karnal bunt by mid-April. In addition, the few alarming stories about the possibility that must be aware of the possibility that an increase in rolet would use up the entire contents of a 7,500- Ariwna Department of Agriculture has created tight grain stocks, combined with another food prices during this election year could lead to bushel grain bin. Something to think about.. 230 new positions to monitor the state's wheat short crop year, could cause a big jump in food voter pressure to implement an export embargo. crop as harvest gets underway in that state .• prices in 1996. Obviously, an embargo would be catastrophic for High corn prices The media and general public's growing con- our industry. Farm Bureau's policy on embargoes is cern about food prices is tangled up with fear and strong and clear: we believe that all agricultural force ethanol misinformation about the impact of the new farm products should be exempt from all embargoes Vegetarianism on the production cutback rise in Great Britain legislation. People outside of agriculture are getting a distorted picture of the farm bill. They hear that it except in the case of armed conflict. Farm Bureau believes that even the threat of embargoes or other D ue to record-high corn prices, the Archer Daniels Midland Co. (ADM) announced it gives farmers a "lucrative" government payment regardless of what they grow, but they don't hear or restrictions adversely affects markets. We need to remind people how dependent agriculture is on V egetarianism is on the rise in Great Britain due to the mad cow disease scare, according to the Associated Press. The London-based Vegetari- would cut back on ethanol production. ADM said it would resume full production when corn prices recognize that the transition payments are phased- exports: we rely on international markets twice as an Society said it has been receiving more than 400 drop to "reasonable levels." out over seven years and that farmers have given up much as the U.S. economy as a whole. By the year calls a day from people interested in learning more May corn on the Chicago Board of Trade significant financial safety nets. 2000, we will be two-and-a-half times as dependent. about vegetarianism due to fears of eating tainted (CBOT) last week hit 14.25 per bushel, the highest There are two reasons why those of us who I'm convinced that we, as farmers, need to beef. The mad cow scare was the last straw for price since the CBOT started trading futures in grow food should be very concerned about a food undertake a good, sustained educational program many people, said Steve Connor, society spokesman. 1877. Just last year, farmers were selling corn for price scare. First of all, there's the danger that con- on what's happening in agriculture today. Without The purchase of vegetarian cookbooks also $2.40 per bushel. sumers will blame farmers for the price hikes. Many that effort, we could see a misinformed backlash has increased in recent weeks due to the scare. "This is a temporary reduction, and we will be of you may remember the "beefboycott" of the mid- on food prices that could harm our food and fiber Waterstone's Booksellers Ltd., a popular British back to full production as soon as possible," said 1970's, when consumer groups staged highly visible system, an industry all Americans should remember book chain, has reported a five-fold increase in sales Martin Andreas, senior vice president of ADM. "This and vocal protests of a temporary run-up in retail represents 16 percent of our nation's GNP and pro- of veggie cookbooks during the last two weeks. is just another part of the normal agricultural cycle." beef prices. Could such a scenario happen again? It's vides one out of every six jobs. However, some people in that country have The cutback in production would equal approxi- possible, especially if the media and general public not given up their traditional beef-eating ways. Thou- mately 100 million bushels over a year-long period. buys into processor propaganda that an increase in sands have been flocking to British supermarkets to ADM views $3 corn as the break-even price for etha- the cost of raw materials (food) is solely to blame for purchase beef at slashed prices. Salinsbury - one of nol production .• higher prices in grocery stores or restaurants. the two largest grocery chains in the country - sold What can all of you as farmers do to help de- Jack Laurie, President out of beef last weekend due to price cuts .• Corn futures fuel flect attacks on food producers? You can be alert to Michigan Farm Bureau inflation worries FarmDayta to be sold to DTN C orn futures reached an all-time high early this week, generating a sharp across-the-board B roadcast Partners, the company that supplies the FarmDayta service, has agreed in principle to be acquired by Data Transmission Network (DTN), in Omaha, Neb., more than 30,000 FarmDayta agri- cultural customers, bringing DTN's total in the agri- cultural sector to more than 100,000. u.s. fruit orchards safe from deadly virus surge in commodities and prompting market ana- lysts to issue warnings on inflation and the economy. According to William Smith, of the Chicago its major competitor in the field of electronic news. Broadcast Partners, headquartered in Des epidemic Sun-limes, the bull market in corn, along with re- The combined company intends to continue offering both FarmDayta and DTN news services. The sale is still subject to closing details, in- Moines, Iowa, was formed in the fall of 1990 as a partnership between Farmland Industries, Pioneer Hi-Bred International and IAACCommunications, Us. fruit orchards have been spared infestation of a deadly virus - plum pox - that is attack- ing fruit trees throughout Europe. However, Agri- cent increases in crude oil and precious metals, suggests that prices may be heading upward, dimin- ishing the likelihood that the Federal Reserve will cluding financing. It's expected to close within a the news distribution branch of the Illinois Farm culture Department researchers have devised a lower interest rates. couple of months. Bureau. potential remedy in the event that the disease en- Commodity prices are one of several factors If completed, the deal would give DTN, based No terms of the deal have been disclosed .• ters the country. used to determine economic trends and interest After five years of testing, USDA's Agricultural rates. Bond traders, who understand commodities' Research Service has developed a genetically engi- impact on raw material prices, have been alarmed New state statistician neered plum tree that appears to be resistant to the virus. "It is good to know that we now have some control strategies ready if plum pox hits our or- by the upward trend in commodities prices. The rise could put pressure on bonds. The price of grains, especially corn, has avid D. Kleweno became the new Michigan D state statistician for the Federa1/State Michi- gan Agricultural Statistics cultural Statistics Service since 1973. Dave comes to Michigan after serving the last four years as state statistidan in Alabama. He has also worked in Mis- chards," said Ralph Scorza, a horticulturist with the Agricultural Research Service. surged recently because of extremely low stockpiles and increased exports. Monday's dosing price for Service (MASS) on souri, Washington, D.C.; California; and The genetically engineered trees now will corn for May delivery was $4.35 a bushel, the high- March 31. MASSis jointly Washington. Dave is a graduate of Washington State be tested further in Central Europe, Scorza said. est price ever at the Chicago Board of Trade .• funded by the Michigan University and did graduate work in mathematical Additional tests will be undertaken in the United Department of Agricul- statistics at Oregon State University. States to improve the overall fruit quality of the Florida tomato ture and the U.S. Depart- Dave comes to Michigan with great antidpa- new tree line .• ment of Agriculture's tion. Many similarities exist between Michigan's growers file complaint National Agricultural Statistics Service. The diverse agriculture and Washington, where he was raised. But regardless of the state, agriculture faces F lorida Agriculture Commissioner Bob Crawford has announced that the state will back tomato growers in a complaint to the International Trade MASS office in Lansing many new challenges. With sound information, chal- Supply fears fuel high Commission and the Commerce Department asking provides current agricul- lenges can become opportunities for change that tural acreage, yield, production, inventory and price yield workable solutions. An old proverb says, "A commodity prices for remedies to Mexican tomato dumping. information for the state of Michigan. Kleweno is a native of the Padfic Northwest, man's judgment is no better than his facts." Provid- ing these reliable, timely, agricultural facts is the aim N ear panic about tight supplies led to record highs for wheat and corn futures on the Chi- cago Board of Trade. Soybean futures also rose "With the survival of our industry and the health of our state economy at stake, we have no alternative but to take action against this unfair having grown up on a cattle and grain farm in Wash- of the new state statistician. Please call Dave at 800- sharply in response to the grain increases. trade and blatant abuse of the open market system," ington. He has been employed by the National Agri- 453-7501, if you have any questions or concerns .• For six straight days, corn futures reached all- Crawford said. time highs before falling back late Wednesday. Florida's 1995 tomato shipments dropped 45 The MIchlgMt hrm News (155N:07.u..9962) Is published twice per month except In the months of November. December. June and July when onfy one Issue Is printed. as a service to regular members. by Michigan farm BuI'NU. 7373 West Wheat climbed 20 cents, reaching the trading limit, percent from 1994 while Mexican sales in the U.S. Saginaw Highway. lAnsIng. Michigan 48917. Member SUbscription price of S1.50 Is Induded In ann ... dues of in response to reports of extensive frost damage to rose 147 percent, according to Agriculture Depart- Michigan farm Bureau ~ular members. Additional subsafptlon fees required for malllni MkhigMt F.rm News to nonmembers Met outside the continental U.s.A. Second~ postage paid at Lansing. Michig .... and additional soft red winter crops in Ulinois, Indiana and Ohio. ment numbers. mailing offices. Stockpiles are at a 22-year low, causing con- Florida tomato growers estimate they have Letters to the editor Mld statewide news artk:Iet should be sent to: EdItor. MIchlgM FMm News. Post Office Box 30960. LInslng. Michigan 48909-1460. POSTMASTER - Send address cNnges to; Mkhlgan farm BunNU. Post Office cern over supplies and triggering the jump in future lost more than $400 million in sales over the last Box 309fiO. lansing. Michigan 41909-&460. prices. U.S. Agriculture Secretary Dan Glickman three years to lower-priced Mexican produce. Flori- Editorial: DennIs Rudat. Editaf and Business Manager. Thoma Nugent. Associate Editor. held a news conference recently to refute any calls da growers produce an estimated $600 million Design and Production: Jeffrey Rutzky. Staff Contributors: Mike Rogers for embargos as a result of supply shortage .• worth of tomatoes each year .• Officers: President, Jack laurie. Cass CJty: VIal President. Tom Guthrie. Delton: Administrative Director. Chudt Burtett Treasurer and ChJef Anandal Offk ... Tom PWler. 5ecmary. David VanderHaag ... Directon: DIstrIct 1. Jim Miller. CoIorrM; District 2. Blaine YMSkIde. Marshall: District 3. MIchaef fusilier. Mandlester, District 4, Tom Guthrie. Delton; Leach. Saginaw; Dhtrkt 9. Joshua Wunsch. Tr~ Walunhoff. "-Va. At-lMge: Jade IAurle. Cass CIty; F. Distrkt S. Alan Garner. Mason; DIs«rict 6. Wayne Wood. u.Iette: DIstrkt 7, Rick Johnson, l.erOy. District .. Ridwd CIty; DistrIct 10. Mwgaret 1Cwtes. West Branch; Distrkt 11, Robert Adam, Snew«: Jan Vosbwg. OlfMJl; Judy Emmons, SherIdan. Promotion Ind EducatIon, Brigette LNdl. Olmax; Young f.-men, Chris DonbroQ, Coldwater. '.. For more information on Farm Bureau urges destruction legislative topics in the Michigan Farm News, of British imported cattle T call 800.292.2680. o guarantee the safety of American beef and ties, aided by many livestock breed registry associa- to further reassure consumers that Ameri- tions, are continuing efforts to trace 35 head whose can beef is safe, the American Farm Bureau location or existence is not known. STATE ISSUE Federation (AFBF) is urging livestock and govern. No cases of BSE have been found in the U.S. ment officials to locate and destroy all British im- Scientists are now researching a possible link be- Graduated driver license ported cattle found on U.S. farms. tween BSE and Creut1feldt-Jakob disease, a rare but Bovine Spongiform Encephalopathy (BSE), fatal disease in humans. BSE is known to have a H B.4763, sponsored by Rep. Gustafson (R-Williamston), has passed the House and is currently awaiting action on the Senate floor. The period immediately prior to applying for the card; • Presented certification by a parent or guardian also known as mad cow disease, has been found in British cattle. Several hundred beef and dairy animals long incubation period. AFBF President Dean Kleckner said U.S. live. imponed by American farmers could have been stock producers are willing to take strong action to legislation creates a graduated driver license struc- that the applicant had legally accumulated at exposed to sources of the disease in Great Britain restore consumer confidence in the U.S. beef sup- ture for drivers under 18 years of age with three least 50 hours of driving experience, 10 of which before the U.S. implemented restrictions in 1989. ply, which is already the safest in the world. levels of criteria that must be met at each level. were at night; and Those restrictions have prevented the import This action is not being driven by good sci. Level 1 would be a restricted license and is- • Must be 16 years of age and passed a secretary of both live animals and animal products from Great ence - it's being driven by consumer concerns, sued to a minor at least 14 years 9 months of age of state-approved performance road test. Britain and other countries where BSE has been Kleckner said. And those are not fully justified. In who has successfully completed "segment one" of limitations of a level 2 license would be: found in native cattle since the 1989 ban. this case, American livestock producers are willing the driver education course approved by the Michi- Minimum of 6 months at this level; could not drive The imported cattle are not market animals to give up their prize cattle arid do their fair share gan Department of Education and has written ap- between 12 midnight and 5 a.m. but high~uality breeding animals purchased by to reduce those concerns. proval of a parent or guardian. Students are re- A level 3 license would be issued to someone American farmers to introduce new bloodlines into AFBF has urged authorities to continue their quired to log 50 hours of driving experience, 10 of who is at least 17 years of age and has completed 12 their herds or to begin raising a breed not native to search for the remaining cattle and to provide which are at night, with the parent or legal guardian. consecutive months without incurring a moving the U.S. adequate compensation to the owners. The animals limitations of a level 1 license would be: violation, accident, suspension, or certain restricted Authorities have been able to locate 113 of will be destroyed as a precaution .• Could only drive with a parent or guardian or, with period violations during the level 2 restricted period. those that are still alive. Federal and state authori- the approval of the parent or guardian, a licensed Debate on the bill is currently focused on the driver over 21 years of age. This level would be for a mandate for public schools to provide driver train- minimum of 6 months. ing. Sen. McManus has proposed an amendment Will there be a market for Monsanto A level 2 restricted license would be issued to that assures that this bill would not impact the 16- Roundup-Readysoybeans? someone who: and 17-year-olds that were covered by Public Act Continued from front page guarantee we will be able to accept Roundup-Ready • Had a level 1 restriction card for at least 6 251 of 1995, which allows youths to work in ag The reaction to the developments in the EU soybeans during the 1996-97 crop year." months; processing operations. Under the McManus amend- has not produced much change in the U.S. crush- Bunge and Cargill • Successfully completed a Michigan Department ment, the driving limitations would still exist be- ers' approach to this situation. Some have agreed to Bunge and Cargill have no special policy con. of Education-approved "segment 2" driver tween 2 a.m. and 5 a.m. contract soybeans for fall delivery without reference cerning Roundup-Ready soybeans. Although these education course; MFB Position: MFB policy supports a gradu- to Roundup-Ready soybeans, while others have tak- firms appear ready to accept fall delivery of Round. • Has not been cited for a moving violation or ated licensing system . en a more cautious approach. The American Farm up-Ready soybeans, farmers should verify this point involved in an acddent in which he or she was MFB Contact: Howard Kelly,ext. 2044.• Bureau has contacted some of the major crushers with their local facility. cited for a moving violation during the 9O-day and procurers and inquired about their position on 'I1Ie AncIersons Roundup-Ready soybeans. They are as follows: "The Andersons will buy your Roundup-ready ADMlGrowmark Soybeans and your Bt corn this year at no discount STATE ISSUE Their position? "While ADM/Growmark sup- to our bid for #1 beans and #2 yellow com. We Appropriations - Department of Agriculture ports the technology and regulatory approval of simply ask that you tell us at the time you contract Roundup-Ready soybeans, it is unwilling to assume them (and then again when you deliver them) that T he MDAappropriations bill, H.B. 5584, spon- sored by Rep. Tom Middleton (R-Ortonville), has passed the House and is currently in the Senate the Department to conduct random sampling of meter accuracy on oil and gas wells on state-owned the risk of and substantial costs associated with the rejection of a cargo based upon the cargo contain- they are genetically altered, so that we can keep them segregated." land. Currently, the Depanment has the responsi- ing Roundup-Ready soybeans. It is the position of It should be noted that all crushers contacted Appropriations Committee. The bill appropriated bility for weights and measures, including gas ADM/Growmark that it shall accept delivery of were very supportive of the concept of Roundup- $36.6 million for operations of the Depanmenr of pumps; however, they did not have the authority or Roundup-Ready soybeans at all locations as soon as Ready soybean seed and had language to that Agriculture for fiscal year 1996-97. As passed by the resources to monitor meters on gas and oil wells. Roundup-Ready soybeans have received all applica. end in their policy statements. However, several House, the bill contains $240,000 funding for the The purpose is to determine if future monitoring ble regulatory clearance and Roundup-Ready soy- stressed the need to remain responsive to wishes Michigan 4-H Foundation Kettunen Center. It is and regulation is required. beans are generally accepted in the trade." of their foreign customers, and each has different anticipated an additional $200,000 will be allocated Most of the House floor debate centered Ag ProcessIng Inc. and unique requirements. to that project in fiscal year 1998. This funding is on an amendment that would have taken money "Until the regulatory clearances and market What should , ...... do? new money that will pass through the Department from the Department - specifically the $1.2 million acceptance is granted in all major importing coun. Monsanto Roundup-Ready'" soybeans are an to the Kettunen Center for construction. for technology upgrade - to provide funds to reim- tries, it will be difficult for the trade to purchase and exciting development and represent an important A one-time approp~ation of $1.2 million burse farmers for losses incurred because of the process the Roundup-Ready soybeans. Therefore, step in modern agriculture. However, the only way from an inactive horse race revenue account was default of the Pinconning cheese plant. This floor in response to your calls, "Will AGP purchase and to find out how well they will work for individual appropriated for food safety and licensing that will amendment was defeated and the bill passed, process Roundup-Ready soybeans this fall?" The producers is to field test them, advises Boehm. be used for upgrading technology needed by the moving to the Senate for further consideration. answer is, "If and when the technology is cleared by "Before farmers plant Monsanto Roundup- Department. MFB Position: Farm Bureau supports the bill. foreign countries, then yes, we will be processing Ready soybeans they would be well-advised to Language was also developed that requires MFB Contact: Ron Nelson, ext. 2043.• them. Until it is cleared, we won't." check to make sure that the resulting production Central ~a can be sold within acceptable delivery parameters," "Although we totally support the technology Boehm suggested. "Different crushers have differ- STATE ISSUE incorporated into the development of Roundup- ent polides in this regard so farmers may have to Michigan Aquaculture Development Act Ready soybeans, Central Soya cannot at this time inquire beyond their traditional marketing locations and firms." • L egislation sponsored by Rep. Mike Green (R-Mayville) provides for the establishment, regulation and protection of aquaculture as follows: Species qualifying for inclusion on the list are under the following criteria: • Were naturally indigenous within "the waters of Johnson System~ quality grain cleaners get a lift • The Department of Agriculture is the lead agency Continued from front page ing workers numerous work-related injuries, says the state," which includes groundwater, lakes, and clarifies that aquaculture is an agricultural streams and all other waters within the state, at the Grand Ledge Agri-SaIes site turned out to be Johnson. A rubber-tarped canopy cover is standard enterprise. including the Great Lakes. a one-hour job for the chopper, including taking on the new cleaners and can be unhooked and • The raising, breeding, transporting and sale of • Were naturalized within those waters . down the old cleaners, says johnson. "I'd estimate folded back out of the way during service . fish and aquaculture products are regulated by that we saved about $2,000 on just the cost of the The cleaners installed at Grand Ledge are • Could not perpetuate in the waters of the state. the Department of Agriculture and spedfically crane, and then we picked up an additional half-day capable of cleaning 15,000 bushels per hour. Capad . • Were confined in a research fadlity for the pur- states that these activities take place in private on a crew of 10 people that could be used on com- ty can be increased by simply adding additional pose of determining whether they should be waters, not in public waters. added to the approved list. pleting assembly," he said. sections. Sectional construction also fadlitates in- • Research on species that are not indigenous The legislation has been approved by the johnson was pleased enough with the process stallation. "The old cleaners that we took down to Michigan may be permitted. The bill provides House and is awaiting Senate action. that he's already planning to include Construction were all one piece - we actually had to torch them a list of approved species for aquaculture MFB Position: Farm Bureau supports the bill. Helicopters in his next project in Indiana that also in half just to get them down," johnson said. production. MFB Contact: Ron Nelson, ext. 2043.• requires a grain cleaner and distributor replace- Construction and site preparation are critical ment. "We're going to adapt our rigging and adapt when contemplating the use of a helicopter, says our setup to use the helicopter - it's just so much johnson. deanup of debris, dust, scrap metal and STATE ISSUE faster," claimed johnson. tools is an absolute must. johnson actually built a That's good news for johnson System Inc., metal shipping container that was used for hoisting RA. 232 amendments based out of Marshall. Approximately 75 percent of tools and small parts to the top of the silo via the johnson System's work is commercial millwright helicopter .. R ep. Kim Rhead (R-Sandusky) is sponsoring legislation to allow additional commodities to organize under P.A.232, including nursery stock shared in by the program. This amendment was initiated by the com producers. Provisions are made for the borrowing of work. Not satisfied with the deaners that were avail- able on the market, the company set out to custom. According to Russell, in addition to making site inspection visits prior to doing a lift, Construc- build a cleaner that met their quality and capadty tion Helicopters takes care of making all the ar- and aquaculture. The bill contains a clarifying funds by commodity programs with the approval of specifications. rangements with local airports and notifying local amendment for soybeans, which is organized under the director of the Department of Agriculture and The end result is a cleaner that will be added to police and fire departments. They also provide all of a national checkoff to allow the waiving of the five- with strict limits on the amount of funds borrowed the company's product line. "We believe there will the necessary insurance coverage, which, knock on year referendum if a periodic review is provided for. and the payback provisions. The legislation has be need for these cleaners, since many of the existing wood, will never be an issue. "I've been doing this There is provision in the national program for a been approved by the House and is awaiting Senate cleaners were installed during original construction for eight years, and we've never had a close call,". periodic review. action. in the mid- to late 70s," johnson explained. said Russell. The bill also provides that royalties that are MFB Position: Farm Bureau supports the bill. The metal covers of the old cleaners were For more information, contact johnson collected because of funding of projects will be MFB Contact: Ron Nelson, ext. 2043.• notorious for getting caught in the wind and caus- .. System Inc., (616) 781-9000 or Construction Helicopters Inc., 800-521-5130 .• Expect multiple weed problems in CRP land A n Ohio State University (OSU) weed The overall seriousness of weed problems specialist recommends farmers to be may be related to management practices used when patient if they are thinking about taking the land was idled, Loux said. advantage of USDA'searly release from Conserva- "The problem is that fields have been man- tion Reserve Program (CRP) contracts this spring. aged in various ways," Loux said. "What helps favor- The U.S. Department of Agriculture an- ably is if it's been mowed every year in the program:' nounced that some contracts due to expire on Sept. Although annual mowing keeps down brush 30 may be eligible for planting this spring. However, and small trees, it still might not have been enough OSU weed specialist Mark Loux said that may not to handle perennial broadleaf weeds that thrive in give farmers enough time to treat the multiple undisturbed soils. In addition, CRP rules required weed problems that have developed while the land farmers to keep the land in cool- or warm-season laid fallow for the lO-year contract period. grasses or legume mixtures, which will need to be "Far and away the best thing is not to put it burned down. into production this year, but wait until next year," As for continuing weed problems, much de- Loux said. pends on the buildup of weed populations when Loux said the most effective treatment is a the land was idled, Loux said. Left undisturbed, two-step program requiring herbicide applications weeds, such as giant foxtail, spread seeds across the this fall and in spring 1997 in order to kill the cover field, leaving a "pretty good seed bank," he said. crop and perennial broadleaf weeds. This program "It all depends on how messy it was before requires at least 1.5 quarts per acre of Roundup you go in there and on how good of a job you do plus 2,4-0 or Banvel in the fall. Then in spring, on weed control," Loux said. "Do what you have to come back and apply Roundup and/or 2,4-0 as do for weed control." necessary before planting corn. Generally, expect high populations of giant Loux said farmers should plan on spending foxtail in lands converted from CRP to crop produc- Weed control can be difficult on former CRPacres, especially when attempting to utilize $15 to $20 per acre for chemicals in the fall and tion. Control preplant weed escapes with postemer- no till. However, soybeans may be a better option than corn for first year use of CRPground then $5 to S10 in the spring under this program, gence chemicals. since a later planting date allows more time for getting the field into condition for planting not including application costs. An economical approach for controlling foxtail and because of the availability of good post-emergence herbicides for soybeans, says Farmers who wait to plant next year can start in soybeans would include a pre plant application of Northrup King Agronomist, Dean Grundman. getting their land ready this summer by using spot either Prowl, Canopy or Scepter to control or sup- treatments on brushy plants, such as multiflora press grasses, followed by a postemergence treat- announcement and is based on a Sept. 30 contract Extension's Ohioline home page on the World rose. For small trees, Crossbow is effective when ment such as Select, Assure, Fusion or Poast Plus for expiration date. WideWeb(http://www.ag.ohio-state.edul applied after leafing out. hlter-emerging foxtail plants. Postemergence op- The publication is available on Ohio State ohiolinel) .• However, for farmers who want to take advan- tions for grass control in corn include Accent or the tage of USDA's"early-out" provisions, several weed use of Poast Plus on one of the new sethoxydim- control options are available for spring planting, Loux said. One of these involves high rates of resistant (SRC) corn hybrids. "Sign-up dates and other details of this early- Farmers always looking Gramoxone and Extrazine, although it is less effec- tive than if the two-step program were used as de- out offer will be announced after the rule-making process is completed," said U.S. Agriculture Secre- for improved weed control scribed above. tary Dan Glickman. "We wiIIalso make an an- Another option is to wait until perennial grass- es are 10 to 15 inches high. Apply 1.5 to 2 quarts of nouncement on options to extend expiring CRP contracts before the early-out sign-up period be- E ven though half of all soybean farmers in the nation are happy with their current weed con- trol program, they are ready to switch if they see introduction of Authority soybean herbidde. Forty percent of all soybean farmers surveyed are very satisfied or somewhat satisfied with using Roundup with 2,4-0 followed by atrazine, all in gins, giving producers all of the information they something that might work better. a preemergence or preplant incorporated weed preplant treatments. need to make the CRP decisions." This was a basic conclusion from the Authority control program, but postemergent herbidde appli- These treatments are designed to taclde the Ohio State University Extension has isSued Research Survey completed for FMC Agricultural cations are commonly used by this group .• multiple weed problems a farmer is bound to face Fact Sheet AGF-024, "Converting CRP Land to Crop- Group in conjunction with its planned 1997 crop- when converting CRP land back to row crop pro- land or PasturelHayland: Agronomic and Weed year introduction of Authority herbicide. duction. Farmers likely wiII see perennial grasses Control Considerations," with detailed recommen- In the survey of more than 1,000 soybean Farmer Satisfaction With and legumes, brushy plants, small trees and peren- dations for converting CRP land to productive uses. farmers from across the nation, Total Research Current Soybean Weed Control nial broadleaf weeds, Loux said. The fact sheet was developed before the USDA Corporation determined that 50 percent of soybean growers are very with their current herbicide program. Forty-two percent of all the farmers interviewed are somewhat satisfied, and only seven (fMiiiNJ percent are not satisfied with their current herbi- Serving Michigan cide program. Farm families is Of the 1,015 farmers interviewed, 58 percent had used their current herbicide program four RADIO NETWORK our only business years or less, and many of those farmers indicated they were still having some problems controlling a few troublesome weeds. S ince its beginning in 1971. Michigan Farm Radio Network's only only objective has been to serve Michigan's farm families. This dedication to serve agriculture is shared by 26 local radio stations "This research suggests that aithough farmers might be satisfied with their current program, they will quickly switch if a better product comes along" in Michigan. Through these stations, Michigan Farm radio Network says Nick Phillips, FMCventure manager for the provides the latest in market analysis, weather and news to Farm Bureau members daily on the following stations: Station City Frequency Morning Report Noon Report WABJ Adrian 1490 5:45 am 11:05-12:00 pm WATZ Alpena 1450 5:30 am 11:30 am WTKA WLEW Ann Arbor Bad Axe 1050 1340 6:05 am 6:30 am 12:00-1 :00 pm 12:50 pm 830,395.00 WHFB Benton Harbor 1060 12:15 pm 54 X 13 X 90 1 1 1 WKJF Cadillac 1370 5:45 am 11:10am Deluxe Machinery Storage WKYO Caro 1360 6:15 am 12:10-1:00 pm WTVB Coldwater 1590 5:45 am 12:00-1 :00 pm WDOW Dowagiac 1440 6:05 am 12:15 pm 1- 24' x 14'6" AU.JMASrEEL~ • 2' Endwall Overhang Double End Door • I' VOll00 Sidcwall ~ • Premium Klnar 5001J)/ WGHNAM Grand Haven 1370 5:45 am 12:15 pm 1-22'6" x 13'AU.JMASrEEL~ • Continuously Ventilated Ridge Hylar 5000 Paint System on Sides WGHN FM Grand Haven Double Side Door • Exterior Wainscot • Gutters & Downspouts 92.1 5:45 am 12:15 pm 1- 9- Lite T300 Walkdoor • Interior Protective Liner • Free Monon Weathervane WPLB Greenville 1380 6:15am 11:50 am 1-4' x J 9-Lin: Wuxhv wi Shuttm • FLUOROFLEX 2000Thl • 8 Skylites Revolutionary Pain! System on Roof WBCH Hastings 1220 6:15 am 12:30 pm WCSR Hillsdale 1340 6:45 am 12:45 pm WHTC WKZO Holland Kalamazoo 1450 590 5:00-6:00 am 12:15 pm 12:00-1 :00 pm 823,375.00 541 X 131 X 90' WPLB FM Lakeview 106.3 6:15 am 12:15 pm Basic Machine Storage WOAP Owosso 1080 7:15 am 12:40 pm 1- 24 x 14'-6" DED (Wood) WHAK Rogers City 960 12:15 pm 1- S300 Walk Door White Only • White Poly~ter Paint System WSJ St. Johns 1580 6:15 am 12:05-1 :05 pm • KYNAR 500Wj WMLM St. Louis 1520 HYlAR 5000@ Color Trim 6:05 am 12:20 pm 800-447-7436 / All WOIrnntia prici~~nduda include, mum.1 .nd !.bor .nd ato nol proratI- (one star) Tire should receive 18 psi tricalloads," he suggested. "I don't know if those What about the safety concerns expressed by ~ ** Tire should receive 24 psi future electrical loads will develop or not, but if Hayes? While Miller acknowledged that there are .ri >l-U Tire should receive 30 psi FI Farm Implement tires for ag use and limited trailer highway service Evaluating the need for an at-planting insecticide in corn NHS SL Not for Highway Service Service Limited to ag use he decision of whether or not to use a soil related to the plant communities that result from insecticide. This decision may vary on a field-to-field T SS Skid-Steer or Mini Loaders insecticide when planting a corn crop is the various tillage regimes, or from tillage effects on basis, in some cases depending on yield history, (Numbers on a tire's sidewall indicate rim based on the likelihood of having insect soil structure, moisture and temperature. For exam- crop variety, ete. diameter, section width and section height. pests in the soil. Several factors influence this likeli- ple, cutworms hatching from eggs laid on weeds in Once a decision to use an at-planting insecti- For instance, the marking "18.4-3810" means hood, including: crop rotation pattern, tillage pro- minimum tillage fields may move to the crop when cide is made, the table below may be used to select the tire has a sectional width of 18.4 inches; it is of bias construction. indicated by the dash; has a gram, incorporation of cover crop or manure, past burndown is performed too close to the time of the product that most closely fits the pest or pest rim diameter of 38 inches, and a ply rating of 10.) experience and cost. By considering each of these crop emergence. Also, given extreme cold and little complex that is present. • factors, a corn producer can get an idea of the likeli- snow cover during the winter, corn rootworm egg Rates and placements of commonly used at-planting corn insecticides and their compatibility hood of an economic benefit from use of an at- survival is known to be better under no-till condi- for the control of various insect pests of corn. Rates are expressed as ounces of product per planting insecticide. tions than with conventional tillage practices. 1,000 linear feet of row.' Crop rotation patterns can influence soil in- Volatiles given off from the breakdown of sect numbers. Corn rootworms are more likely to organic matter after incorporation of green plant Aztec: Counter Dyfonate Force Fortress Furadan Lorsban Thimet Insect 2.1G 20CR 15G 1.5G 2.5G 4F 15G 20G be a pest when corn is not rotated with another material or manure in the spring can be attractive to corn rootworm 6.7 (T,B ,IF) 6 (T,B,IF,C) 8 (T,B,C) 8-10 (T,B,IF) 6 (T,IF) 2.5 fl.oz. 8 (T,B.lF,C) 6 (T,B.c) crop. Fields that are to be planted to corn in 1996, adult seedcorn maggots. The female flies like to lay (IF,B,C) and were corn in 1995, should have been scouted eggs in the soil of these fields, providing the hatch- cutworm2 6.7 (T,B,IF) 6 (T,B,IF,C) 8 (T,B) 8-10 (T,B,IF) 6 (T,IF) NL 8 (T,B) NL for adult beetle activity in July and August. Where ing maggots with an ample food supply. Crop seeds suppression 8-16 (IF) beetle counts exceeded one per plant, a soil insecti- planted into these fields also become a food source. seedeorn beetle 6.7 (T,B,IF) 6 (T,B,IF,Cl 8 (T,B) 8-10 (T,B,IF) NL NL 8-16 (T,IF) 6 (T,B) cide at planting is recommended to prevent eco- Sometimes only a particular part of a field (for seedeorn maggot 6.7 (T,B,IF) 6 (T,B,IF) 8 (T,B) 8-10 (T,B,IF) 6 (T,IF) 2.5 fl.oz. (IF) 8 (T,IF) 6 (T,B) nomic injury to corn roots this season. Where corn example, a low, poorly drained area) may have a white grub 6.7 (T,B,IF) 6 (T,B,IF) 8 (T,B) 8-10 (T,B,IF) 6 (T,IF) NL 8-16 (IF) 6 (T,B) follows pasture or set-aside, the larvae of wire- high number of soil insects. Past experience in such suppression 16m worms or white grubs should be antiCipated. If cases may indicate that an insecticide may only be wireworm 6.7 (T,B,IF) 6 (T,B,IF) 271b1A (T,B) 8-10 (T,B,IF) 6 (T,IF) 2.5 fl.oz. (IF) 8-16 (T,IF) 6 (T,B) either of these insects is present in large numbers, needed in these localized areas. 16 (B) they should easily be found on the soil surface dur- Insecticide cost must also be considered. Each 'T = t-band, B = conventional band, IF = in-furrO'N,C = at cultivation.Letters represent the recommended placement method. ing tillage operations. grower must weigh the expected economic benefit NL = not a labeled use; suppression = labeled on~ for suppression. The effects of tillage on soil insects may be from use of a soil insecticide with the cost of the 2Post-planting .rescue treatment. application isthe recommended method of control for this insect. Discussion The farm bill over the long haul . ~ ~~.r~II" • • ~ .. -At .. ... '-'-." ... .. -", ,.'c:.,., .. -. . management. That moderating capacity will be much less in the future. One implication is that a farmer's marketing skills will ultimately determine whether he or she has a place in the future, according to Commodity gradually increase your net worth." There are two ways to get there, according to Dial: revenue insurance and revenue assurance . The steps involved in revenue insurance as outlined by the CFTC commissioner include: year, he said. "And remember, if you take a profit, you'll never have a loss." How American producers compete in an in- creasingly market-driven economy will depend on many factors beyond commodity programs. "Even Ma,1996 Futures Trading Commission (CFTC) Commissioner • Sign up for the government Multi-Peril Crop if we simply continued current law, USDA analysts A monthly resource Joseph Dial. "The 60-year-old status quo is not the Insurance (MPCI) program. "More participation estimate government program payments would for the Community road for the 21st century. There are too many de- has brought down the cost of crop insurance," account for only one percent of total gross income Action Groups tours, too many stop signs," he said. he pointed out. of farm operators by the year 2000," said USDA Sec. of Michigan Farm Dial called marketing the fifth in a series of • Add the buy-up coverage to your policy. Glickman. So, for better or worse, Michigan produc- Bureau watershed changes in agriculture down through the • Secure replacement cost coverage of your ers are setting sail into uncharted production and ages, beginning with domestication of animals and insured bushels from a private sector crop marketing waters. Be sure to read future issues of he April issues of the Michigan Farm News T planting of crops, followed by mechanized equip- insurance firm. the Michigan Farm News for navigational hints and contain detailed information on the short- ment; hybrid seed, fertilizer and chemicals; the • Buya put option with the strike price that advice .• term "nuts and bolts" details of the new high-tech age of genetic engineering; and precision works for you. farm law. The discussion topic for this month will farming through new technologies, computers, ete. • Forward contract if the cash market price DlscasslOQ QuestIons assist you in taking a long-term look at the impact Dial said marketing will quickly evolve over the next exceeds the strike price and sell the put. 1) What percentage of farmers in your area of this historic farm legislation. five years and change the way farmers do business. The revenue assurance route involves enter- will use "risk management" alternatives USDASecretary Dan Glickman said there is no With the federal government extricating itself ing into a contract offered'by certain companies to to help them withstand crop failure or doubt that, in the long term, trade, not commodity from agriculture, it will soon be impossible, if it isn't farmers who exclusively use their hernicides, seeds, other disaster? programs, will define agriculture's future. The already, to obtain loans without a marketing and etc., but there is a premium associated with it, said 2) In what ways have farmers and agribusi- USDAexpects U.S. agricultural exports to be $60 risk management plan, he said. "Freedom to Farm is Dial. The premium is based on area yield. Compa- nessstarted to adjust to the new gov- billion this fiscal year. American agriculture is cur- ernment farm policy? the first expressway, the road to increase net nies then offset the yield risk on the Chicago Board rently twice as reliant on international markets as worth," he suggested, but warned farmers not to of Trade. 3) Do you believe the enactment of "Free- the U.S. economy as a whole, and by the year 2000 expose themselves to its inherent volatility. "Gov- dom to Farm" lessensor increases the Elements for a financial safety net, according likelihood of future government farm it will be 2.5 times as reliant. ernment traffic is greatly reduced, but you must to Dial, include: policy changes? In what ways? As this trend continues, foreign economic drive at a safe speed, navigate curves carefully . • Keeping good financial records, and understand- 4) How can farmers work to expand export conditions, policies and the weather increasingly That's where risk management comes in," he said. ing how to use them to identify the rate of return markets and control government polices will affect the economic fortunes of American pro- Traveling this road, however, requires a on each enterprise in your operation. that might hurt agriculture's accessto ducers. Long-term market trends are favorable to changed attitude toward change, he observed. • Investing the time, energy and money in the export markets? U.S. producers. But markets - especially agricultur- "People's ability (Q change is not a function of "knowledge work" necessary to comprehend and 5) With the elimination of government al markets - are volatile. capadty, but of choice," he stressed. "You must use prudent risk management in your business. price support programs, what changes Glickman pointed out that in the past, the analyze what is new and different. You must be Dial emphasized that farmers should stop are neededllikely in producer marketing programs or practices? How can Farm government could moderate the effects on produc- constant evaluators. The destination is to achieve chasing the price and focus on securing revenue. Bureau assist in making those changes? ers with safety nets, acreage set -asides and stock a guaranteed revenue stream, which in turn will "That's the way you'll stay in business year after * '* '* Michig~".: ~arm Bureau presents *.* *- 19~~Young People's * Citizenship Selllinar *' . ... . June 17.21 High Schooljuniors and seniors are invited to attend this five-dayseminar designed to teach you about our American Alma Colh:!9C' • Alma. Mich. political system. The seminar emphasizes the need to be inforrriedand involved in the decisions that affect Americans Don't miss out in their communities, state and nation. The program will on this great. include: 1<: Keynote Speakers opportu~it~;'. . 1<: Workshops Reservation Deadline 1<: Political rallies, campaigns, caucusesand elections is May 24, 1996 ... with students as .political party" delegates, .candidates. . . : and .registered. voters Call the Midligan * Rural a~d urban students from all over Michigan Farm Bureau.VoUftg Studentssh~uld be proud to represent their school and the Farmer Depar::tine"tat Farm Bureau organization, and be willing to discuss their This year's event includes SOMETHING forEVERYONE: 800-292-2680/ eXt. 3234. experiena:swith groups following the seminar. a State'. large.t a Carnival game. and Tickets just $5 - BARBECUEfeaturing PRIZESFORTHE KIDS beef and pork along with a CountryMUSIC'" MLast AVAILABLE IN aU the flxln'. and Ride" until 7:30 p.m. ADVANCE ONLY .. DESSERT, from 4-7 p.m• !!:IIII;.g~:~~:li!ll: PARKING at the Summerfest site, weather permitting In the event of Inclement weather, atop b. the MFa All Expo lent for pallllng InstftlCUon .. 1038 STACK LINER WAG- CLARK IT 70, 8,000# tractor JD 3430 self propelled mow- ON: Like new condition! Priced to sell. Call 1-517-843- 6932 evenings. type forklift. 12' lift, 6-cylinder gas, power shift. Good condi- tionl $8450. Warner Swazey er conditioner equipped with cab, air, and radio with 12' #300 twin knife head. Only -------------------------------------------- Summerfest '96 tractor type forklift, 4,000# 847 hours! Excellent. Ticket Order Form 1979 FORD Tri-axle farm cab and side shift, 3-cylinder $21,800. Also TSS Meyers truck. JD4310A beet harvest-. er. Speedy beet topper. JD4630 tractor.JD dummy gas. Runs great! $6950. 1-800-754-7107. 18' forage wagon with 15 ton heavy duty LTD gear and WIN PRIZES Addre •• 1-616-754-0572. 14 ply tires bought new in 6 head with Innes pickup. JD of 95. $8900. 1-616-826- All order fonns 25K-3 PTO generator. Cal- FOR SALE: FARMALL M, in 3715. postmarked before umet 3250V manure spread- er with injectors (bad tank). good condition, runs great. Call evenings, 517-426-0406. JUNE 7 .re eligible 1-517-673-7470, JD 4430, $11,900. JD 4630, for. grand prize 1-517-673-7171. FOR SALE: Three Brock $12,900. International 1566, drawing of aWEEKEND grain bins, 25,000 bushel $8900. JD 544 loader, 4x4, 2 GETAWAY .t Orand 65 BUSHEL DRYING BIN, each.Morton Meyer continu- 1/2 yard bucket, $15,900. $3000. 2-4 or 6 ton feed ous flow, 450 with extension. Traverse Resort! JD 450 six way blade, $8900. tanks plus auger and motor, Portable or stationary Brock Clark's Tractors, ..... checks pqable tolllCMlClAJl FAIUII auRlAU to: $1000.-$975. 3 ton tank plus holding bin, 2100 bushel 8am-4:30pm. auger and motor, $750. 17', grain auger. No longer farm- MFB Summe"'st '86 • Post Office Box 30960 • Lansing, MI 48809 1-810-629-9376. 5" transport auger plus motor, ing! 1-616-423-7358. $475. 54' PTO 8" transport auger, $1800. 10' auger. $50. FORD, NEW HOLlAND trac- 1-616-399-2284. tors and equipment from Sy- JD 55 COMBINE, $1500. JD mon's in Gaines. For 43 494A planter, $575. IHC 4- AC 180 DIESEL TRACTOR, years your best deal for the row bean puller, $250. Innes new J-Star 50' belt long run! 500AR windrower, $275. Call conveyor,(less motor). $1475. Symon's 1-517-678-4121 evenings or 1-517-386-2192. 1-517-271-8445, Gaines leave message. INTERNATIONAL 303 com- JOHN DEERE 425 off set ALUMINUM IRRIGATION SYSTEM disk. International 400 4-row for sale. Will cover five acres, bine with 3 heads, 2-row JD 7000 4-row wide corn wide, 3-row narrow, 13' grain. planter. Plateless finger pick- corn planter. 222' Van Dale 2", 3" and 4" pipe, with PTO gutter chain. 270' Patz gutter pump. 1-517-727-9945. $1000. JD 1250 com planter, up, monitor liquid, 2000 6-row narrow with monitor, acres, no till units on seed chain. Large silage cart. Clay $350. units. Always housed. Excel- 16' silo unloader. BALER: New Holland 270 with thrower. Excellent condi- 1-616-765-3113 lent condition. 1-313-428- 1-616-734-2532. All Purpose Steel Storage Building tionl $1800 or best offer. Call 7758. LIVESTOCK miscellaneous • Grain • Livestock • Equipment 1-616-754-6969. fencer, fence, wire, posts, JOHN DEERE M with plow stock prod and more. $200. and John Deere B. Good 40' -60' Widths x Desired Length LlLLlSTON 2000, rolling cul- Elevator on transport, $300. JOHN DEERE 17 hole grain sheet metal and running con- tivator, with new fertilizer box, Mohawk 10 tooth chisel plow, drill with seeder. $695. dition. 1-616-279-2565or Call 1-800-531-4364 $400. 1-616-599~2251. $1200. 1-517-834-2576. Call 1-616-754-3079. 1-616-279-2480 evenings. rilfi~'lDJ~_lle_ .ili!I.1 .lllillll ................................ ;.; : :..•....•.;.; :.; .,,: , ... AGRILAND EXCHANGE INC. ~ MANURE SPREADERS: 400 POUND SQUARE bales LLAMAS ARE GREAT, and CHICKS, CHICKS, PHEAS- New and used. Balzer, Better- Bilt parts. UPS daily. Also, straw and 1st and 2nd round bales hay. Delivery available! now they're affordable! These docile, intelligent ani- ANTS, Quails, Chukars, Tur- keys, Peacocks, Ducks, Ban- Your Full Service grain dryers and handling Edward Kalis mals make wonderful pets for tams, Guineas. Stamp for equipment. Hamilton Distributing Co. Winn, 1-517-866-2540 hiking, packing, picnicking, pulling carts, or to just plain price list: Rolling Hills Pre- serve, 17025 McKenzie Agricultural Real Estate Broker 1-800-248-8070 enjoy. Their wool is valuable Street, Marcellus, MI 49067. NEW IDEA snowblower, MICHIGAN CERTIFIED SEED: Newdak, Porter, Prai- and they also make outstand- 1-616-646-9164. If you have ace rage to se II, ing guard animals. Call for a Model 517, $1500. JD 116 lawn tractor, 46" deck, $1000. rie oats, Bowers barley. Felix Conrad, Century 84, Vinton visit today! 1-616-677-3309. we may have a buyer! 81, soy beans. Chinook light Ron and Nancy Laferriere. Blade for Farmall Cub, $300. Laferriere Llamas mar reds. Bayside seed, 1-810-727-2452. corn, soybeans, Dairybrand Marne, Michigan Call for more details and information (Just northwest of Grand NEW OAK HAY WAGON BEDS. Any size (8x16 with 6' and Crystal alfalfa .. B&M Seed Rapids) on current listings back, $299). Oak truck equip- BORDER COLLIE PUPPIES: ment or semi decking. Instal- lation available! Mobile Custom Saw Milling 1-517-463-2846 LLAMAS: North American Sitting Bull and Essex blood- lines. Pet males and weaning Working parents. Ready for new home around May 15. $100 each. 2651 Coolidge Road East Lansing, MI 48823 517 336 1570 -- QUALITY ALFALFA and females. Reasonable priced! 1-313-587-8431 Call 1-616-378-4159. mixed hay. Almont, Michigan. Call for more information and SIX GANDY INSECTICIDE Ferguson Farms visit. 1-517-645-2719. units. Like new condition! Call 1-8l0-395-7512 Miller's Uamaland Marc, 1-517-845-6891 after Potterville, MI 8pm. LLAMAS: Your visit to our TWO 20' SILO Un loaders. Llama Farm is most 75' Butler feeder with Ran- welcome! Learn about these dolph bunk and roof over. fine; easy to care for animals. MALE, GERMAN/AMERICAN PhD Call 1-517-584-3329. Woolly pets and halter student (Ag Engineering trained. Weanlings available. Stuttgart, Germany) seeks full TWO COLBY CHOPPER Jack & Barbara Danly time work experience July 1 wagons for sale. Tandem Horton Bay Uamas through corn harvest on 1000- gear. One 7', 3-point hitch 06300 Boyne City Road 3000 acre crop or combina- Model MKHB100 $2,950 stone rake. 1-616-924-5558. Charlevoix, 1-616-582-7473 tion crop/livestock farm. Wag- plus freight & assembly WANTED: Four row narrow es negotiable. Raised on 50 • Opening at rear of hay basket is the full corn planter with plates. Pre- PIEDMONTESE (" ATTLE acre dairy/livestock farm, width of the rack and can be unloaded fer International 56 or John Lean, tender, douole mus- holds truck drivers license within 25 feet. (Class 2). American citizen • No tugging to dig bales out of rack. Deere. 1-313-522-6677. Lease financing cled, good calving Quality registered ease. breeding with social security number, • Caster type front wheel allows easy fluent in English. Call my for equipment stock. Also available embryos and semen . aunt, Melanie 1-616-626- backing like a trailer. • For highway trailing empty, caster wheel 8896 for more information af- vehicles & Redbird Farms Lapeer, Michigan ter 6pm. can be locked in raised position. .• Holds up to 100 full-sized bales 1-810-667-7389 buildings • Bales will not bend since they are not being thrown . QUALITY ANGUS BREED- • Bales cannot slide out of the loading chute when disconnected from the baler. ING STOCK. Performance • Two hay baskets will do the work of three bale thrower racks . • 100% tax deductible tested, Bulls semen tested . • You do not have to invest in a bale thrower. • fixed payments Free delivery! Also, Border Collie Stock Dogs. Call today . • min advance payment Bordner Angus Farms EXPERIENCED Michigan ag- Sturgis, MI1-o16-651-8353 ribusiness attorneys with farm UP TO 400/0 OFF!!! REGISTERED L1MOUSIN backgrounds. Knowledge and 20 YEAR WARRANTY ~~ bull. Three years old, gentle experience in all farm areas; American Steel Arch Inc. FACTORYDIRECT TEIMARKINC. and guiet. Easy calving! $2000. Call 1-517-724-6480. restructure, stray voltage, bankruptcy, estate planning. EAST SIDE: Thomas J. Bud- 1.800.942.1234 800-451-3322 REGISTERED POLLED zynski, 43777 Grosebeck Hereford breeding age bulls, Highway, Mt. Clemens, Michi- heifers. Also A-1 heifers and gan. 48036. 1-800-463-5253 cows. Rocky Banner blood- WEST SIDE: Robert A. Stani~ ~~ lines. MSU performance test- ed. Call Rye Hereford Farm 517-734-3005 ha, 40 West Sheridan, Fre- mont, Michigan, 49412. 1-616- 924-3760 SAVE NOW FARM BUREAU TBAl'El CORN: High moisture, $85 REGISTERED SCOTTISH SAVE MONEY Twisted Slash Point Of MICHIGAN per ton. Feed analysis availa- Recycle your diesel and in- HIGHLAND CATTLE, breed- ble. dustrial air intake filters using ing stock and semen for sale. the Sonic Dry Clean System. Providing Michigan Omega Farms Visitors welcome! Call 1-517- 1-517-468-3366 No liquids or detergents Farm Bureau members 543-7979 evenings or week- used. 50% savings over new with the specialized ends. Charlotte, Michigan. FOR SALE: Cleaned Mancan filters. service you deserve. buck wheat. Tested 99% puri- Recycle No\!~ Inc. ty. Call 1-800-800-9548 be- Rocky Mountain Elk: Holland, MI • Airline Tickets Livestock of the Future. TB 1-616-396- n24 fore, 6pm. After 6pm., call 1- • Tour Packages 616-546-3268 . accredited herd. Animals of 616-3~8102,Fax • • Cruises Hotel Reservations MICHIGAN CERTIFIED SOY- all ages! Traverse City, Michi- gan. OEM • Car Rentals BEAN SEED: Kenwood-94, Conrad-94, BSR-101 and Imperial Elk Ranch 1-616-946-5922 Certified • Amtrak Monday-Friday, Hardin-91. Also, certified Newdak oats seed. Call Replacement Schmidt Farms of Auburn TEXAS LONGHORNS: 8 a.m.-4:30 p.m. 1-517-662-6705 Quality registered breeding Call 800-292-2693 1-517-662-2695 stock available. Call 1-616- Ovemight 676-1462 days or weekends. KOUTZ BARN PAINT & RE- Deliv~ Ada, Michigan. PAIR: Now with 100' boom truck Now doing grain dryers, Available Field Cultivator Sweep steel roof repairs and high TEXAS LONGHORNS: The buildings. ANGUS BEEF: Bulls, heifers and cows with calves. Per- forrmance tested, semen easy to raise cattle! Bulls, steers, heifers, and bred cows for sCile. Stock for pen- ning and for purebred breed- ing. 1-517-681-3110, 517-463-1029. 11- GROlJP PlJIICHAS'NG tested. Free delivery! Call Diamond 6 Ranch anytime. 1-616-642-9042 SHAGBARK FARMS Alto, Michigan TRADE (like for like), or sell, 1-616-808-6040 registered Simmental Bull. 120' CLAY BELT LINE feed- EXPERIENCED HEIFER GROWER Seven to choose froml Cows 140 SOW FARROW-to-finish Place your ad for 6 willing to custom raise heifers and heifers for sale. er. Purchased new, used one season. Will sell complete for and return as springers. 400- Cal/ 1-517-689-4696. hog barn on five acres locat- ed in Tuscola County. Built in months, get phone 500 head capacity. 1979. P.A. 116 needs repairs. half price. Call 1-517-869- 2685 or 1-517-869-2440. Ask 1-616-793-7338. $59,000. number or name in red. 1-517-673-7470, for Tom. FOR CURRENT LIST of available Angus Cattle. write: HOH/lJIfIBIIS! 1-517-673-7171. Place your ad for 1 L B. WHITE HEATERS: New, used and parts . Secretary, West Michigan An- gus Breeders 585 36th year, get phone number BULK FEED BINS! New, used Street SW, Grand Rapids, MI 49509. • ~~~eck or name in red and also HOG EQUIPMENT! NEW, USED PORTABLE HUTS! HIGH QUALITY HOLSTEIN paycheck save $1.00 per ad. service age bulls from high Growe Systems Mason, MI producing cow families and top sires. LOANS BY PHONE HUNTING LEASE WANTED: Call 1-800-676-4142 Pasch Farms, Inc. SAME DAY APPROVAL Ethical and responsible bow MIX MILL GRAVITY fed side 1-517 -644-3519 -Statewide Service. Call Toll Free- hunter wishes to lease hunt- ing rights to southern Michi- 1-800-968-3129 discharl;Je with bins, $1250, JOIN THE NEW LIvestock: 1-800-968-2221 OBO. Big Dutchman feeders, wide chain. chicken Best of- EMU chicks and coming 2 gan farm on your terms, ref- erences available. Call John, for details fer. 1-517-674-2763. year olds. ALLSTATE MORTGAGE 1-313-791-0259. ' ..".. Call 1-81 0-378-5471. !! !loans by phone!!! ~~:~l'jtl~lJ:t~ April 30, 1996 MJicll:i:ga:n 'arm News CI'assified .e~ef~.1I FISH FOR STOCKING: Giant Hybrid Bluegills, Rainbow Trout, Walleye, Largemouth Bass, Small mouth Bass, ... • PROFESSIONAL CATTLE hoof trimming: Statewide! Over 14 years experience. SOFTWOOD WANTED: Sawlogs and pulpwood. White, Red, Jack, Austrian - •..................... ICELAND-LAND OF FIRE AND ICE:August 13-27 Tour. Farm Visits 1 ABSOLUTE TOP CASH for land contracts. Up to 95ct on 1965 Plymouth Barracuda Original Classic. Rebuilt 273, Prices start at $6. Call and Scotch pines. Also, Bal- Dairy/Sheep Quotas the dollar. Best offer guaran- V-8, 9500 miles, automatic, Channel Catfish, Perch, Fat- Norman Beale sam, Spruce and Hemlock. 5-Gqited Horses head Minnows. Laggis' Fish teed. Same day close. robin eggs blue, black 1-616-n5-0488 Especially White Pine saw- Reforestation 1st National interior. Garaged year-round. Farm, Inc., 08988 35th logs; standing or roadside. Geothermal Greenhouses. Street, Gobles, Michigan. 1-800-879-2324 No winter driving! Old car Lower Peninsula only! Lava Fields, Glaciers, price guide rated "No. 2 1-616-628-2056. SAVE 75% ON WORK Northern TImbertands, Inc. Geysers, Hot Springs, Water- Evenings, 1-616-624-6215. "Fine". Valued, $9100. Asking CLOTHES! Good, clean, re- in business over 35 years!. falls $8200. 1-517-636-7286. cycled in very best quality. Call 1-517--356-9759 Greenland Optional FLY CONTROL: Safe, effec- for pricing and specifications. Fully Escorted. tive, no chemicals. Prevent Money back guarantee. Free flies from hatching. Informa- brochure Good Company Tours. 1973 International Scout: Suntex Recycling TRAVERSE CITY: If you Call RoseMary, 4WD, automatic, Texas truck. tion prices, call or write: Use- wish to buy or sell farm or 1-800-434-8987for brochure. ful Farm Items, 3540 76th, Toll Free, 1-800-909-9025 $2500 or best offer. recreational property in north- Call 1-616-754-1463. Caledonia, MI 49316. west Michigan, we can help. TWO BEDROOM COTTAGE 1-800-635-5262. Call Ron McGregor k North- for rent w/direct access to SHREDDED PAPER: Excel- ern Michigan Land Drokers, beautiful, sandy beach on GUN CLEARANCE lent absorbent material-ani- Inventory reduction of all fire- 1-616-929-1515, Lake Michigan at Frankfort. HUDSON CONSTRUCTION mal bedding. Use instead of 1-616-943-7709. 1985 FORD F-350 pickup. arms! Pistols, rifles, shot- Excellent swimming at the SERVICES One ton, 6.9L, diesel, 2WD. straw/sawdust. Contact rates beach or use indoor heated All types of agricultural, com- guns, knives, and ammo. All as low as $125. Call Mark at WANTED TO BUY: Standing Loaded! 160,000 miles. Al- priced to sell! pool at Harbor Lights Motel mercial, residential construc- ways starts. Great hauler. 1-616-786-2424. timber of all kinds. Call and Condominium. Fish Contact: Gardner's Guns at R. H. Rehkopf tion. Steel, bricks or sticks. U- One owner! Asking $4000. 1-616-754-9800. from two piers. $550 per censed and insured with cer- 1-517-689-4160. Big Rapids, Michigan week. Cable TV, washer/dry- (Permits required) 1-800-725-7861 tified engineers. er. All linens furnished. Call 1-616-785-9704.025 HARDY OUTSIDE TV ANTENNAS dirt cheap! WANTED, STANDING TIM- Call 1-800-346-9614. WOOD FURNACE Save a bundle on Channel BER: Buyers of timber of all Words #1 seller. Stainless Master and Winegard anten- types. Cash in advance! steel construction. Heats nas and accessories. For a 1-517-875-456~ ask for limo home, hot water tank, pools. free catalog, call 1-800-528- Maple "aplds Eliminates fire danger. 10 9984 (This is a corrected Lumber Mill, lne. year warranty! Dealerships available. 1-800-743-5883. phone number). Denny's Antenna Sales St. Johns, MI FOR DISPLAY AD INFORMATION Jamboree Acres WANTED: 2"-8" used alumi- Mineral Owners GaS/Oil: In- num irrigation tubing. Buy, CALL 1-800-292-2680 Sell or Trade! Call vestor interested in purchas- WEST MICHIGAN BARN ing, producing royalty income RESTORATION. We repair Rain Control 1-800-339-9350 EXT. 3203 for immediate cash. Prefer or replace foundations of all Antrim gas. Other formations kinds. Roofs, floors, beams, WANTED: Old motorcycles, considered. Call Jay, 1-800- sidewalks and doors. Struc- snowmobile and off road ve- 968-7645. tural straightening and paint- hicles. 1965 and older. Call JD at 1-517-676-0583. MSU SPORTS FANS! Subscribe to Spartan Maga- zine, your source for Michi- ing. No Sunday calls. 1-616-924-4151. r---------------------------------, I Deadline for next issue is May 3, 1996 I gan State Sports! 18 issues I I for only $32.95. Call 1-800-732-6532. : l J VISA Call1-80D-968-3129 to Place Your" : The Spartan I Classified Ad Today! I I I or use the coupon below and mail or fax your I I STRAW CHOPPERS: We re- build and balance. Some ex- I classified ad to Michigan Farm News I changes. We stock chopper parts. ENGINE REBUILDING I I our specialty. Auto- Truck- Thinking about I Buy Line/Daily News FAX: I Tractor -Antiq ue-Continental- Kohler-Onan-Wisconsin en- selUng your farm? :. P.O. Box 6, Stanton, MI 488~8 1-517-831-5063 : gine dealer. 69 years of service! J HART'S AUTO PARTS -Consider the auction method! Classified Ad Codes Cecil, OH 1-419-399-4717 Over the last two years, our 1. Farm Machinery 10. Wor1t Wanted 20. Wanted To Ouy auctions have generated actual 2. Livestock EquIpment 11. Agricultural Services 21. Special Evenls sales prices on average 28.8% 3. Farm Commodities 12. Business Servtces 22. Recreation higher than the release prices! 4. Seeds 13. BusIness Opportun/Ues 23. FInancIng S. LivestOCk 1". Real Estate 24. Investors Wanted. -If you want to learn more about 6. Poullry 15. Real Estate Wanted 25. Buildings HERITAGE BUILDING SYSTEMS Halderman auctions, give me a 7. Oogs and PuppIes 16. Estate Sales 26. Lawn And Garden call! 8. Pon/esIHorses 17. Auctions 27. Announcements 800.643.5555 JO I 40 1 10 Summer Sale $4.927 Larry Borton 9. Help Wanted 18. Antiques/Collectibles 28. To GIve Away 40 160 1 12 50 175112 57.976 511,180 (5.7) 323-86. t 19. General 29. Vehicles 60 1 100 I 10 515,957 Name Phone ( ) _ 80 1 150 1 14 529,655 r.oml!l('rrial Sll"t'l buildings Iraruring rilS}' boh up assrmbl}' from Amrrlra's Ia/llfSl disllibufor, II'r ha'r nmIO,fXX) standard slzrs 01 shop, farm. Indusrrial. H~~~M\~" SERVICES Address cOffil!l('rrial and mlnl ....arrhou.'if 'N/ildings. All aff City cOffipk'fr Itlrh rnglnrrr Slamprd JX'rmir dralting.~ and a 20 frar roof and ...all ruSl ItjUranl}', r.all us rorlay lor a Irrr Infonnalion pacbgr and a QUOIr on our lop Classified Ad Code Requesled 1IUi11itybuildings or building cornponrm pans. Desired Insertion Dale(s): :\Iini Warehollse Sale $9,909 Method of Payment .111 , I..!'U '''1111.1' 111111 .. , l"u,.ll h "Ith II.I""UII' ... Check $ (payableto Michigan Farm News Classified) Visa Card Number Exp. Date _ SYSTEM Master Card Number INC. Exp. Date Aluminum Barrett -16 1 x 6 8" 1 X 6 8" -14,000 GVW 1 ClassIfied Rates - $8 for up to 24 words. 30 cents each additional word "Designing for Growth" $8,716!!!! 'Write your ad here, including phone num~er and area code 20 x 8 6" Flatbed ~~Y;'~~~"'~~ 1 1 2 3 4 14,000 GVW ~ ~ 5 6 7 $2,800!!!! 8 9 10 11 12 • All Trailers Plus Freight 13 14 15 16 Complete Fann System • M.1nyoptions. sizes and colors available \7 18 19 • Grain Bins 20 • GSI Top Dry • Financing Available • Airstream Auto Dl'Jt!rs 21 22 23 24 • • • Feed Processing & Delivery Equipment Bucket EleViitors Milwright Services Silver Saddle Sales 25 26 27 28 • Dryer Repair & Services "Our Prices Can't Be Beat" 29 30 31 32 Johnson System, Inc. Marshall, MI 810-627 -2826 33 34 35 36 616-781-9000 S&H • Barrett. Roadboss L ~ Circulation over 46.000 In State of Michigan. Soybean Marketing Challenge monthly position reports! -sIuMIw Lawn F..... gram crops. The entire month of March was rela- ...... AD ... ,.... would be as much as 50 percent sold using a M Satarday Moral .. Bop tively flat on the November soybean chart. It started by Marvin L. Hodson and Steve Beier mum/Maximum strategy (Le., Long Pur/Short ( by Bill Spike T he March 29, 1996, Planting Intentions RepOrl, from USDA, is regarded as bullish for corn and the month at $7.37 and closed at $7.375, while trad- ing below those levels all month. The slight rally at month-end leads us to believe our $7.50 Nov. fu- O ur established marketing plan is based on the market opportunities and the constrainrs of this program. Our mar- or Short Futures/Long Call;Short Call.) Howevt because of this game's Iimitarions, we have che to raise our action point from $7.50 on the No\! ~l~ neutral for soybeans. Since beans are still underval. tures target for our next sale to come quite easily , keting plan established ber futures to $8. ued versus corn, we would expect since it is only 7 cents above the recent high and 13 ~ • four marketing blocks To manage the downside price risk associ to see bean values rise propor- cents above last Friday's close. for pricing decisions. We estimated four 5,00D-bush- with moving this action point higher, we have a ~ ~ U tional with the antiCipated rally in corn. Corn was up sharply after the USDAreport last Friday. Corn We look for the markets to be quite volatile for the next several weeks as corn and soybeans bid for acres and the wheat crop is in trouble. We will main- el blocks of soybeans, which relates to a 40 bu./acre yield estimate. Our marketing plan considers pro- ducrion and price risk management, price opportu. moved our trailing stop up several times. As of \ last writing, our trailing stop was $6.85. We havt since moved this stop up to $7.40. This measufl prices are extremely strong with the nearby May tain our target of $7.50 November futures for our nity, and marketing time frame considerations. designed to allow us to capitalize on upside 0PI trading over $4.00 as well as new crop December next sale, but after that, we will wait until planting The new crop soybean market posted signifi- tunity without compromising our position. Usir over $3.25. These prices should cause soybean fu- and hope for a potential weather scare that could cant gains in the first half of April. The market this approach, we plan to advance o~r sales at tl tures to bid for acres, particularly in light of a farm propel beans to the $8.00 range .• moved aggressively out of the long-term trading $8 action point; however, if the market moves )( bill that will remove planting restrictions on pro- channel and is showing signs of panic buying situa- instead, we'll action at $7.40 to avoid selling eve tions. This type of activity could result in a rapid lower in the market. sell-off, which is worthy of a more aggresSive risk In summary, we are currently 25 percent s MonthJy Position StateIIIeats management strategy. on our esrimated production of 20,000 bushels ; Price Profit Adjusting to previously undefined limitations $7.131/4. Our next action point is $8 November Date Sold Description Trade/Settle or (loss) in this challenge has been cumbersome in the pro- futures where we will consider advandng sales. ' Andersons 2/8/96 5,000 Nov. 96 Soys 7.1325n.39 (1,212.50) cess of risk management. We feel obligated to men. manage downside risk on this position, we are MAC 2114/96 5,000 Nov. 96 Soys 7.2225n.39 (762.50) rion that in the real world futures marketing we maintaining a trailing stop loss of $7.40.• SLF 1/29/96 5,000 Nov. 96 Soys 6.9675n.39 (2,037.50) Michigan Soybean Marlcetlng Challenge Award Sponsors: Account Balances Beg. Bat Margins Profit/(loss) Commission End. Bat .A...Fann Credit Services ~At the heart of agrowingAmerica.. __ \I CYANAMID mmmm. liLiCiiiiC Andersons $20,000 (2,500) (1,212.50) (37.50) $16,250.00 MAC SLF $20,000 $20,000 (2,500) (2,500) ( 762.50) (2,037.50) (37.50) (37.50) $16,700.00 $15,425.00 liJo\ PI~gR. O~ /PlIl'IIBt Earlier heifer breedin~ may improve profits · for dairy farmers I dairy f farmers could find a way to begin breec JUSTA FEW ing heifers sooner without redudng the heifer future milk producrion, they could increase their profirs. Traditionally, farmers breed heifers to fres MORE en between 22 and 30 months of age - once they've reached sufficient size to carry a calf and give birth. A SAPMAresearch project is developinJ way farmers can possibly reduce that time period SEASONS and breed heifers earlier. 5-..,............. of ..... The project, headed by MAESscientist Allen AND HE'LL Tucker, is studying the effects of diet combined wi injections of bovine somatotropin (BST) on heifel growth and development. BST is a natural growth hormone. Animal scientists at MSU's Dairy Cattle BE OFF TO Teaching and Research Center initially studied 38 heifers fed a variety of diers, with or without injec- tions of BST. Researchers found that heifers fed a COLLEGE ... high-protein, high-energy diet combined with inje rions of BST were younger when they reached pu- berty and had greater bone, muscle and mammary growth than those on standard diers. K......... Ok producIIcNI ...... BEITER CALL YOUR FARM "In the past, dairy farmers had to wait until the heifer was big enough to calve without difficult BUREAU INSURANCE AGENT before they could begin breeding because puberty is tied to growth," Tucker said. "They tried high- RIGHT AFTER THE GAME. energy diers to speed up growth, but that can have a detrimental effect on the heifer's future milk pro. duction. We're trying to breed the heifer earlier By starting now, you can give your without affecting subsequent milk production." family the kind of future you want them The key may be the addition of BST before puberty to increase the heifers' rates of weight gain to have ... a future that includes college, a increase skeletal and muscle mass, and possibly paid-off mortgage, and enough money to decrease calving difficulties. StbauIatI ... pelvic ..... keep the family together. "We found that just feeding the heifers a high. Even if something happens to you, energy, high-protein diet had no effect on the growth of the heifer's pelvic area," Thcker said. a plan from Farm Bureau Life Insurance "Injections of BSf increased the size of the heifer's of Michigan can make sure your dreams pelvic area, which theoretically allows her to give birth easier." live on. Thcker also believes the addition of BSf may We are the only Michigan-based stimulate milk production in the first lactation be- company named one of the top 50 cause heifers fed the special diet with BST showed an increase in milk-produdng cells in their mamma- outstanding life insurers in America, ry glands. based on safety, security, and financial BodJ ..... .. k pnd.dIoII performance. Call your Farm Bureau The second phase of the project is attempting Insurance agent today. to determine if BST can speed body growth without affecting milk production. The researchers are studying 105 heifers at the Dairy Cattle Teaching Making your future more predictable and Research Center and MSU's Kellogg Biological Station that are being fed standard diers; high-pro- tein, high-energy diers; and high-protein, high- energy diets plus BSf to determine the effect of ... FARM BVREAIJ diet and BST on milk production. ~~:."_~ 'NSIJRANCE fAlll BIllfAUMtITOO • fAlil BUtWI Uf£ • fWl 8UIWJ GENWl • fI AllNUIlY "The key is to get the heifers producing a profit for farmers sooner," Thcker said. "That will help cut production cosrs for farmers." The researchers plan to present their findings to the Michigan Professional Dairy Farmers Associa- tion, dairy farmers, Extension personnel and dairy industry representatives next year.• by David B. Schweikhardt and Sandra S. Batie, Michigan State University; Otto C. Doering, 111 and Bob F. Jones, Purdue University T he Federal Agriculture Improvement and Reform Act contains major revisions in farm commodity programs. This paper summa- rizes the major provisions of the legislation. Be- cause many program implementation rules must be developed, program participants are advised to consult their local office of the USDA Farm Service ~. Agency for final program provisions. THE BUDGET FOR COMMODITY PROGRAMS: 1996-2002 The budget cost of farm programs dominated ., the debate on the 1996 farm bill and was a major factor in the decision to revise U.S. commodity programs. The total deficiency payments paid for fe,ed grains, wheat, cotton and rice averaged $5.8 billion during the five-year life of the 1990 farm bill. Farm program spending decreased in 1995 as mar- ket prices rose above the target price levels. .. ' Early in the deliberations on the 1996 farm bill, the House and Senate Budget committees es- (. , tablished limits on farm program spending for the 1996-2002 period. These limits established the bud- get for commodity programs that the House and Senate Agriculture committees were required to follow. Commodity program spending for the 1996- 2002 period will average $5.1 billion, with the fol- lowing limits in each of the next seven years: Under the new farm bill, producers will be able to make cropping decisions based on market demands and crop rotation needs. Contract Payment Authorizations COMMODITY PROGRAM PROVISIOIIS Commodity Allocation PelOnfllges was reponed to the local Farm Service Agency The 1996 farm bill replaces the existing target office but did not participate in [he acreage re- • Com 46.2% price programs with Production Flexibility Con- duction program. • Wheat 26.3% tracts available to participants for the life of the act. • The land was enrolled in a conservation reserve The major changes in commodity programs include: • Oats 0.15% contract that expired or was voluntarily terminat- • Target prices and deficiency payments are elimi- • Barley 2.16% ed after Jan. 1, 1995. nated for feed grains, wheat, cotton and rice . • Grain Sorghum 5.11 % • The land was enrolled in a conservation reserve • All existing Acreage Reduction Program (ARP) Upland Cotton 11.6% contract that was released by the secretary of provisions are eliminated . agriculture between the period from Jan. I, 1995, • Rke 8.47% • All 0/85 provisions are eliminated. until the final day of sign-up in the 1996 act. • All existing 1996 Crop Acreage Bases are convert- Any portion of the eligible Contract Acreage on ed into Contract Acreage for the payment of • The permanent legislation established by the a farm may be enrolled in a Production Flexibility Production Flexibility Contracts. 1938 and 1949 farm bills is retained. Contract. Land enrolled in a contract must be used • Eligible landowners and producers may sign Program eligibility: Production Flexibility for agriculture or related activities and cannot be used seven-year Production Flexibility Contracts and Contract payments will be paid on eligible cropland for nonagricultural commercial or industrial uses. Also, Major provisions receive contract payments (called Agricultural that is enrolled in the program and that meets all an owner or producer who enters into a contract may Market Transition payments) for 1996 to 2002. compliance requirements. Landowners and produc- subsequently reduce, but not add to, the quantity of of the FAIR Act Contracts must be signed during the 1996 sign- ers enrolling farmland in a contract must comply with contract acreage covered by the contract. up period from May 20 to July 12, 1996 if any the conservation plan prepared for the farm under Continued on next page • Production Flexibility Contract payments will contract payments are to be received between the Food Security Act of 1985, the wetland protec. replace target prices for 1996 to 2002. The 1996 and 2002. tion requirements in the 1985 act, and the planting acreage reduction program is eliminated. • Program participants are not required to pur- flexibility provisions contained in the 1996 act. • Panicipants must enroll in a Production Flexi- chase catastrophic risk protection crop insurance Cropland will be eligible for a Production Farm bill bility Contract during the 1996 enrollment (CAT) to receive contract payments, but partici- Flexibility Contract if it has Contract Acreage attrib- period from May 20 through]uly 12, 1996 to pants who do not purchase crop insurance must utable to the land and if it meets one of the follow- calendar be eligible for payments from 1996 to 2002. waive their eligibility for emergency crop loss ing criteria: assistance on the crops on which crop insurance • A ponion of the land was enrolled in the acreage FSAwill provide farm base and yield notices to ::J Crop Acreage Bases are converted to Contract coverage is waived. This waiver does not pre- reduction program for the contract commodity producers. These will be the basis for comput- Acreage for calculation of contract payments. clude a producer from obtaining an emergency or was considered planted by USDAduring at ing commodity payments under the bill. "J Any crop except fruits and vegetables may be loan or a payment under the Non-insured Assis- least one crop year from 1991 to 1995. Land that planted on Contract Acreage. There are no tance Program (NAP). was "considered planted" includes acreage that Dairy marketing assessments end. USDA will restrictions on alfalfa production, haying or make applicable refunds for the 1995 and 1996 marketing years at a later date. Provisions of the new farm grazing on Contract Acreage. 11 Farms or producers with a history of planting Sign-up period for producers to enroll farms fruits and vegetables on Contract Acreage may plant fruits and vegetables on Contract Acre- bill will be aired April 30 and sign Production Flexibility ContraCts. Thirty days after FSA approves contracts, advance 1996 age, but contract payments will be reduced for each acre of fruits and vegetables planted. T he new version of the farm bill signed into law April 4 by President Clinton will be discussed April 30 by Michigan State University agricultural sentatives, agribusiness people, farm advisors and landlords who rent their land to growers, according to Sandra Bat.ie, holder of the Elton R. Smith Chair payments will be made. No one can sign con- tracts after this date, except those with expiring CRP contracts. Marketing loans will be available for feed grains, wheat, soybeans and other oilseeds. economists and repre- in Food and Agricultural Policy at MSU. NOTE: Congress mandated that there be sentatives of Michigan's The broadcast will also include discussion on a one-time sign-up period for the entire 1996- The loan rate on sugar is continued at 22.9 ~\'lICHICAN STATE Farm Service Agency. the new provisions, the effect of the new legislation 2002 period. Except for CRP, producers who cents per pound for refined beet sugar. 'I :'\l I V I H I., I 1 Y The discussion can on program payments and market prices, and some miss this one sign-up will not be eligible to EXTENSION be seen via a satellite of the farm management problems the new farm enroll the farm at a bter date. ,. The Conservation Reserve Program and Wet- broadcast at most MSU program may create. lands Reserve Program are extended to 2002. Extension county offices People interested in attending the broadcast Fmall996 payments will be made to producers. The Environmental Quality Incentives Pro- from 7:45 to 9 p.m. Because the new bill contains are requested to contact their county MSU Exten- Dee 1996 or Jail. 'IS, 1M7 gram provides cost -sharing payments for major changes in the farm programs, the broadcast sion office as soon as possible so that adequate 1997 crop advance payments may be made, at environmental protection investments .• should be of interest to farmers, farm credit repre~ preparations can be made .• the option of the producer .• ~ L(:fi"J I =1 L' qj £U0 April 30, 1996 The FAIR Act of 1996: Commodity and conservation programs Continued from previous page PLAllTlIIG FLEXlBIUTY PROVISIONS will be subject to payment limitations. Payments each farm and must refund all contract payments Farmland owners and producers will be eligi- The new farm bill allows greater planting flexi- made under a Production Flexibility Comract will be received during the period of the violation. Howev- ble to emer a ProduClion Flexibility ComraCl if they bility on Comract Acreage. Participants who sign a subject to an annual paymem limitation of $40,000 er, the secretary may determine that the violation meet one of the following criteria: Production Flexibility Comract are permiued to per person (definition of "person" has not does not justify termination, in which case the sec- • The owner of the eligible cropland assumes all or plant any commodity or crop except fruits and veg- changed). Marketing loan gains and loan deficiency retary may require the owner or producer to refund part of the risk of producing a crop. etables on Comract Acreage. There are no mini- payments will be subject to an annual paymem part of the contract payments during the period of • The owner of the eligible cropland and the pro- mum planting requirements for contract commodi- limitation of $75,000 per person. The three-entity the violation, or to accept a reduction in the ducer (other than the owner) share-rem the ties. There are no planting restrictions on any non- rule is maintained for payment limitations. amount of future contract payments in proportion eligible cropland and emer imo the same con- comract acres on the farm. Alfalfa may be harvested SUGAR PROGRAM PROVlSlOIIS to the severity of the violation. tract. on Comract Acreage, and there will be no restric- This legislation freezes the loan rate on raw CONSERVATION PROVISIC*S • The producer (other than the owner) on the tions on haying and grazing on Comract Acreage. cane sugar at 18 cents per pound and the loan rate AuthOrity for the Conservation Reserve Pro- eligible cropland cash-rents the land with a lease Fruits and vegetables may be planted on Con- on refined beet sugar at 22.9 cents per pound. gram (CRP) is extended until 2002 under this legis- expiring on or after Sept. 30, 2002 (the owner is tract Acreage if the farm has a history of planting These loans will be provided as recourse loans. If lation. CRP enrollment is limited to a maximum of not required to emer imo the comract). these crops or if a producer has a history of plant. the U.S. quota on sugar imports is greater than 1.5 36.4 million acres. Program participants will be al- • The producer (other than the owner) on the ing a specific fruit or vegetable. Comract payments million tons, these loans will be made available as lowed to terminate their CRP contracts before the eligible cropland cash-rents the land with a lease will be reduced by an acre for each acre of fruits nonrecourse loans. Domestic marketing allotments scheduled expiration of the contract, provided that that expires before Sept. 30, 2002. The owner and vegetables planted on Comract Acreage. PrO- for sugar established under the 1990 farm bill will the contract has existed for at least five years and may emer imo the same comract. Consem of the ducers imerested in planting fruits and vegetables be eliminated. that the land is not a wetland, windbreak, filters trip, owner is required if the producer imends to on Comract Acreage should visit their local Farm The act also establishes forfeiture penalties highly erodible, or other land of high environmen- enroll less than 100 percem of the eligible crop- Service Agency office to determine their eligibility designed to discourage the forfeiture of sugar to tal value. land in the contract. to plant these crops and the potemial impact on the Commodity Credit Corp. (CCC) under a nonre- The Wetlands Reserve Program (WRP) is reau- • The owner of the eligible farmland cash-rents the their comract payments. course loan program. Cane sugar forfeited to the thorized and provides program participants with an land with a lease that expires before Sept. 30, NOIIRECOURSE MARKETING CCC will be assessed a penalty of 1 cent per pound. opportunity to enroll prior converted or farmed 2002 but whose tenam declines to emer a con- ASSISTANCE LOANS Beet sugar forfeited to the CCC will be assessed a wetlands into permanent easements. Not less than tract. The owner will be eligible to receive con- This legislation provides nonrecourse market- penalty that bears the same relative relationship as 75 percent ofland value and restoration costs will be tract payments after the lease with the non-par- ing assistance loans for feed grains, wheat, soybeans the cane sugar and processed beet sugar marketing paid to participants entering permanent easements. ticipating tenam ends. and other oilseeds. Any participant emering imo a assessments. Not less than 50 percent of these costs will be paid to The legislation also requires the secretary of Production Flexibility Comract will be eligible for Marketing assessments on cane sugar and participants entering 3D-year easements. In addition, agriculture to establish adequate safeguards in the nonrecourse marketing loans for all loan commodi- processed beet sugar will be increased. The assess- some wetlands may be eligible for restoration cost- division of payments to protect the imerests of ties produced on the farm. The legislation establish- ments will be paid by the first processor of sugar sharing agreements without entering an easement. producers who are tenants or sharecroppers. es a maximum loan rate (equal to 1995 levels) and and will equal 1.1 percem of the value of the loan The Natural Resources Conservation Service Calculation of contract payments: conditions under which the_secretary of agriculture rate on raw cane sugar in 1996 and 1.1794 percem (NRCS) is designated as the lead agency in wetlands Production Flexibility ContraCl payments will be may reduce loan rates. of the value of the loan rate on refined beet sugar in delineation. Current wetlands delineations remain calculated for each farm enrolled in the program. Loan rates for corn, soybeans and wheat are to 1996. From 1997 umil2003, the assessment on raw valid until a producer requests a review. NRCS will Payments wi1lbe calculated for each year from 1996 be maintained at not less than 85 percem of a simple cane sugar will be 1.375 percem of the value of the have greater flexibility in assessing penalties for to 2002 as: moving average of the price received by producers in loan rate, and the assessmem on refined beet sugar wetlands and conservation compliance violations. Contract Acreage x 0.85 x Farm three of the previous five marketing years (highest will increase to 1.47425 percent. The Environmental Quality Incentives Pro- Program Payment Yield x Annual Contract and lowest prices excluded). Maximum loan rates The secretary of agriculture is required to gram (EQIP) provides technical and financial assis- Payment Rate = Annual Production during the life of the act are specified at $1.89 per reduce the loan rates for sugar if other sugar ex- tance to participants who adopt certain crop, pest, Flexibility Contract Payment. bushel for corn, $2.58 per bushel for wheat, and a porting countries reduce their domestic and export manure, nutrient or irrigation management practic- The Comract Acreage for each farm is equal to range of $4.92 to $5.26 per bushel for soybeans. subsidies beyond the reductions negotiated in the es that protect water quality. For most participants, the farm's 1996 established Crop Acreage Base for The Secretary is permiued to lower loan rates Uruguay Round of the GAIT. cost-sharing payments are limited to SlO,OOOper each program crop. Program crops in Michigan if carryover stocks are greater than 12.5 percem of TRAIISFERS OF PFCs year or S50,ooO for a multi-year contract. Large con. include barley, corn, grain sorghum, oats and total use in the previous marketing year for corn A transfer of (or change in) the imerest of an fined livestock operations (as defined by the secre- wheat. The Farm Program Paymem Yield is equal to and soybeans, or 15 percem for wheat. The loan owner or producer in the comract acreage covered tary of agriculture) will not be eligible for cost-shar- the program payment yield established for the 1995 rate on other oilseeds will be determined by the by the contract will result in the termination of the ing payments for animal waste management facilities. crop on the farm. same formula, with a maximum loan rate of 9.3 contract for that acreage, unless the new producer SUMMARY The Contract Payment Rate for each contract cents per pound and a minimum loan rate of 8.7 or owner of the acreage agrees to assume all obliga- This legislation represents a major revision of crop will be calculated by the USDAas the budget cents per pound. tions under the contract. At the request of the new existing commodity programs. Producers and land- allocation for the contract crop divided by the total As nonrecourse marketing loans, these loans producer or owner, the secretary may modify the owners should consider the following in making quantity of COntraClproduction enrolled in the may be repaid at the lesser of the loan rate or a comract if the modifications are determined to be management decisions: program. Estimates of the contract payment rates repaymem rate determin~d by the secretary. If reasonable. If an owner or producer who is emitled • Contract payments will provide less down-side are shown in Table 1. All payments will be made producers repay the loan at the repayment rate to a contract payment dies, becomes incompetent, price risk protection than the target price program. each year regardless of the market price . rather than the loan rate, the difference between or is otherwise unable to receive the contract pay- • Planting flexibility provisions will allow greater Annual comract payments will be made no the loan rate and the repaymem rate will be the ment, the secretary must continue to make the freedom in making planting decisions. later than Sept. 30 of each year. Participants may marketing loan gain. Producers who choose to fore- payments according to prescribed regulations. • Rules must be written to clarify the distribution choose to receive advance payments of 50 percem go the loan will be eligible to receive a loan defi- VIOLATIONS OF PFCs of payments between landowners and tenants. of the total annual contract payment. Advance pay- ciency payment equal to the difference between the Contracts of owners or producers who violate • Participants must sign Production Flexibility ments for 1996 will be paid no later than 30 days loan rate and the repayment rate. a requirement of their contract will be terminated Contracts in 1996 to receive payments from 1996 after a comract has been emered into by a landown- PAYMEIIT UMlTATIOIIS on each farm in which the owner or producer has to 2002 .• er or producer. Advance payments will be paid on Production Flexibility Comract payments, an interest. Once terminated, the owner or produc- Dec. 15 or Jan. 15 of all subsequem years. marketing loan gains and loan deficiency payments er forfeits all rights to future contract payments on Guidelines for Landlord/tenant relations under the 1996 farm bill by David B. Schweikhardt and Sandra S. • When a lease expires and the land is planted to Q. WIIat will .",p •• to ProdIlCtloll A. If the land is rented on a share basis and the Batie, Michigan State University; MFB Commodity Activities and Research Division grass or forage or is idled, the owner can receive 100 percent of the payment. The owner must main- FlexlbllItJ eo.tnM:t pa,.."" .... crop is shared, both the tenant and the landlord must enroll the land in a PFC. If the land is rented on ..... upIns slgas writing n the 1996 farm bill, Congress required tain control of the farm and must fulfill the conser- a cash basis and the tenant enrolls the farm's entire I ..... willi •......... ., the USDA to "provide adequate safeguards to vation compliance requirements for the farm. A. The PFC payments are tied to the land on Contract Acreage in a PFC, the tenant may enroll the protect the interest of tenants and sharecrop- • If the landlord and the tenant cannot reach which the Contract Acreage is located, just as defi- farm without the consent of the landlord. If the land pers, including provisions for sharing on a fair and agreement on the division of PFC payments, the ciency payments were tied to the Crop Acreage is rented on a cash basis and the tenant enrolls less equitable basis, in Production Flexibility Comract payments will be withheld from both parties until Base under the 1990 farm bill. Thus, when a new than 100 percent of the Contract Acreage, the land- (PFC) payments." the dispute is resolved. lease is negotiated with a new tenant, the landlord lord must give his or her consent to the PFC. The bill specifically states that Congress "did Given the impaa that current crop prices may and the new tenant may negotiate a division of PFC Q. WIuIt ....... I do If .., ....... not intend that there be any substantial change in have on land values and rental rates, producers and payments. ..... ..t waIIt to earoII ., ..... the existing landlord-tenant policy at USDA, which has functioned successfully for several decades. State law on tenancy should continue to govern the landlords will need to understand the rules on the division of payments and recognize that rental rates may change significantly for reasons other than the Q. WIuIt wUI. F.... to .. Prodac- tIoII FIexIIIIIItJ Cw.bad paJ •• ats If • f__ Is ....., .... ,..., Ia • Plodactloa FlexlbIIltJ c...h-_t A. In this case, the landlord would be respon- relationship between landlords and tenants." new farm program. A. The PFC payments may be transferred to sible for enrolling the land during the 1996 enroll- The rules for division of farm program pay- the new owner of the farm if the new owner agrees ment period. Even if the land does not receive PFC ments between landlords and tenants under this QUESTIONS AND ANSWERS to fulfill the contract's obligations for conservation payments for 1996, the landlord must enroll the farm bill will be the same as the rules applied by the REGARDING LANDLORDI compliance and planting flexibility compliance. land in 1996 in order to preserve the option of re- Farm Service Agency (FSA) in the past. These rules TENANT RELATIONS Q. WIle . ceiving PFC payments from 1997 to 2002 .• will include the following: PlodactIo. FlexlblIItJ c..h-..d d .. Q. ..., .... dlo"" ................ , • If the entire farm is cash-leased, the landowner is .... 1996 _roll ..... period? .......... Prodac:tIoII FlexlbUItJ not entitled to PFC payments. c-.h-_1 P., ........... Idle ........ • If the crop is shared under a share-rent lease, the Both landlords and tenants should remember one primary rule established for .... 1996 CNp ,..." PFC payments must be shared. A. The 1996 farm bill specifically states that by this farm bill: Land that is not enrolled in a Production Flexibility Contract • In general, if the landlord and tenant can agree the negotiation and tennination of leases are still during the enrollment period from May 20 to July 12~1996 will not be eligible to a payment division, the PFC will be approved regulated by state laws. The introduction of Produc- for PFC payments at any time during the years from 1996 to 2002. Any land- by FSA (once again with the exception that the tion Flexibility Contracts does not change Michigan lord or producer whose land might be eligible to enroll in a Production Flexi- owner cannot receive 100 percent of the pay- laws on the termination of leases. Leases may only bility Contract should consult the county office of the USDA Farm Service ment if the crop is shared). be terminated within the restrictions established by Agency to determine whether their land may be enrolled in a PFC during the Michigan law. 1996 enrollment period. ~------------------------------------------------------~ Production flexibility contract payment worksheet. 1996.2002 FSA farm number: Contract commodity (corn, wheat, grain sorghum, oats, barley): 1996 Year Example* 1996 1997 1998 1999 2000 2001 2002 1. Contract Acreage 200 acres (1996 Crop Acreage Base; Acreage by Commodity) 2. Farm Program Payment Yield 100 bu. (Bushels per acre) 3. Contract Payment Quantity 17,000 bu. (Line 1 x 0.85 x Line 2) ~:c:.0. rit.rad: Paym~~.tR.,.a~e 4.... PRELIMIIIARY USDA PFC PAYMENT RATES ONLY - ENTER ACTUAL (DO'lIarsper bushe!Jt , .. ' NUMBERS ~ AVAILABLE FROM YOUR COUIITY FSA OFFICE a.Corn 0.35 0.35 0.46 __ 0.42 0.41 0.37 0.30 0.29 I b. Wheat 0.94 0.94 0.68 0.73 0.70 0.64 0.52 0.50 c.Grain sorghum 0.41 0.41 0.52 0.51 0.49 0.45 0.36_ 0.35 d. Oats 0.07 0.07 0.06 0.06 0.06 0.06 0.05 0.04 e. Barley 0.36 0.36 0.31 0.33 0.32 0.29 0.23 0.23 5. Annual Contract $5,950 (Line 3 x Line 4a, 4b, 4c, 4d, or 4e)f *1996 Example assumes: total crop base acreage of 200 acres; program yield from 1995 corn at 100 bushels/acre. tAli contract payment rates are estimates based on assumed levels of enrollment by eligible program participants. Final payment rates will depend on program enrollment. The payment rates for wheat and feed grains may be reduced to reflect repayment of the advance payments received for 1995 crops. *Production Flexibility Contract payments are subject to a payment limitation of $40,000 per person annually. L ~ •• ~ 1 _ .. '",_ •• ' • Dairy provisions by Larry G. Hamm, Michigan State University 1998 and 1999. At the stroke of midnight on Jan. exceed such marketing in 1995. butter prices, and therefore producer milk checks T he implications of the Federal Agricultural 1,2000, the dairy price suppon will end and The FAIRAct mandates that the number of - under the current component pricing schemes. Improvement and Reform (FAIR)Act on become pan of the history of the 20th century. Federal Milk Marketing Orders (FMMO) be reduced The act also tries to assist the U.S. industry dairy will be imponant - both directly and The price suppon program will be replaced by a to between 10 and 14. The California state order, if develop international dairy markets. The act man. indirectly. Because the U.S. dairy industry has been recourse loan program for commercial proces- requested, could be included as a separate order. dates that the Dairy Expon Incentive Program be weaning itself from the price support program since sors of butter, powder and cheese. Loan prices The order decisions can be expedited and are reo funded to the GATT maximums. Also, the secretary 1983, the direct economic implications of the FAIR will be set at the equivalent value of S9.90 per cwt. quired to be implemented by May of 1999. Coun- of agriculture is to help the industry set up expon Act are likely to be less traumatic than those on • The deficit milk assessment is ended on the first ordered delays will alter the implementation date trading companies. The USDA must also study and other major program crops. day of the month following the month that Presi- by extending it. Of all the act's dairy provisions, this repon to Congress impacts on the U.S. dairy indus. The indirect impacts of the FAIRAct, however, dent Clinton signs the Act. Assessment collec- one has the potential to affect Michigan producers' try of increased imports resulting from the GAIT may be quite important in years to come because of tions will stop with milk shipments beginning income the most. agreement. the act's possible impact on feed costs and feed May 1. The May assessments would have been The act stipulates higher, but uniform, milk There are other miscellaneous provisions and availability. For the time being, the direct impacts over SO.20 per cwt. The rules on assessment manufacturing "make" allowances. These raise details in the Dairy Chapter. The direct impacts on are prescribed by the provisions of Chapter 1 of the refunds have not changed. make allowances here, but lower them in California. dairy will not be dramatic in the shan-run. Howev. FAIRAct. These include the following provisions: • A refund of total assessments collected during The CCC is also allowed to change the "butter-pow. er, as with the other commodities impacted by the • The current price support of S10.35 will be re- 1996 will be made to dairy producers whose total der tilt" twice a year through 1999. The changing of FAIRAct, the dairy industry will be on a new histori- duced S0.15 per hundredweight (cwt.) in 1997, milk marketings in calendar year 1996 do not the "tilt" under surplus conditions directly impacts cal footing as the 21st century dawns .• FARM BILL USDA farm loan programs QUESTIONS? by MFB Commodity Activities and enterprises, such as roadside sales stands, poilu. percent or more of the amount financed in a Research Division tion abatement, solar energy systems, recreation transaction, FSAmay charge a preferential inter- Get answers in the next Michigan Farm News T he farm bill authorizes loan levels of S85 facilities, and rural businesses. est rate, not less than 4 percent. million for direct farm ownership loans and • Emergency loans are limited to total indebted . • The bill targets 70 percent of available direct farm hances are you'll have a question or two $500 million for direct operating loans each of the seven years. Guaranteed farm ownership ness of S5oo,000 instead of $500,000 maximum for each natural disaster. ownership loan funds to beginners. Sixty percent of the 70 percent is targeted to down-payment C about the new farm bill. While you're encouraged to call your county Farm Service loans are authorized at $1.9 billion the first year, .w ASSISTANCE TO BORROWERS loans . gradually rising to S2.1 billion in the fifth, sixth and • A 95-percent guarantee is available for guaran . • Beginning farmers have first priority to purchase Agency office for assistance, we'd also like to seventh years. Guaranteed operating loans are au. teed farm ownership loans to beginning farmers farmland that FSA takes into inventory. ask that you either phone or fax your questions thorized at S600 million the first year and rise to in conjunction with the down-payment loan • The bill raises the limit on the acreage an appli. to Michigan Farm Bureau, so that we can pro- $750 million for the last three years. program and for ponions of guaranteed loans cant may own and still qualify as a beginning vide answers to your questions in the next used to help graduate a direct loan borrower to farmer to 25 percent of the county's average issue of Michigan Farm News. ELIGIBIUTY AIID USE OF FUNDS Direct farm ownership loans are restricted to commercial credit. The maximum for all other farm size. Staff in our Commodity Activities and borrowers with fewer than 10 years of farming expe- guarantees is 90 percent. • The bill increases the cash.flow margin require. Research Division will be available to either rience, or farmers who have participated in USDA • The secretary of agriiculture may make available a ment to 110 percent instead of 105 percent for answer your question directly, or get you the loan programs for fewer than 10 years. five-year line of credit for direct operating loans. borrowers whose loans have been restructured. information you need. More imponantly, many • Direct farm ownership loans may no longer be BEGIIIIIIIIG FARMERS AIID RAIICHERS • The bill requires FSAcounty committees to of the 47,700 Michigan Farm News readers will used to refinance other debts. • Eligible farm ownership applicants may panici- certify that an annual review has been conducted have the same question that you do - so let's • Direct operating loans are restricted to borrow- pate in the 4 percent interest/50-percent joint of a borrower's credit history, operation and loan share the information! ers with fewer than five years experience, or financing program, or the existing 3D-percent program eligibility.• The number to call is 800-292-2680, fewer than seven years of direct borrowing. down-payment program. Under the joint financ. extension 2023, or fax those questions to • Loans are no longer authorized for non-farm ing program, when another lender provides 50 Bob Boehm at (517) 323-6541. Questions and answers regarding the new farm bill by David B. Schweikhardt and Sandra S. in a conservation reserve contract that expires after Q. Den ................ to k .... tile payments are fIXed payments and are not tied to mar. Batie, Michigan State University; MFB Aug. 1, 1996 may be enrolled in a PFC when the ..... tenant for tile ..at -- wears ket prices, repayment of advanced payments will not Commodity Activities and Research Division conservation reserve contract expires. If ...., ..... Prodactloa Flexibility be required when market prices increase. Q. What .... the major cbanges I. CoIdract? Does ............ to sta7 fann programs In the 1996 fann bill? Q. Can ..., land that Is .nrolled In wItII landlord for the next Q. Will tile ProductJo. Flexlbllltw C0n- A. The 1996 farm bill replaces the target price a co...... atIon ......... ~ ...Ad ... tract pa, lacrease ............... -- W ? system of payments with a system of Production enrolled In a Production FI.xlbllIty A. No. Landlords and tenants may negotiate and prices ? Flexibility Contracts (PFC) that farmers and land- Cudbad for the 1996 crop par? terminate their leases just as they have done in the A. No. The PFC payments are fIXed payments lords may sign to receive farm program payments A. Conservation reserve contracts may be past. The land will still be eligible for PFC payments. that will not be adjusted when market prices change. (also called agricultural market transition payments) terminated in time to enroll in a PFC for 1996 if the for the next seven years. The new act will provide land has an established Crop Acreage Base, has been Q. How will the Production FlexIbility Q. Do I lunre to Idle a portion crt m, farmers and landlords with greater flexibility to enrolled in a CRP contract for at least five years, and eo.bad ...,...... .. be dhrIcIed .... CoIItract Acreage to Produc- manage their farms with fewer regulations on what is not classified as environmentally sensitive. __ IaadIonIs and ........ ? tIo. Flexlbllltw Pros par-ellts? may be planted. Participants wanting to enroll their CRP acre- A. Landlords and tenants may negotiate the A. No. The Acreage Reduction Program (ARP) age for a PFC for the 1996 crop year must term.inate division of payments in their lease just as they have setaside requirements were eliminated in the 1996 Q. How wiD landlord and tenant their CRP contract by May 31. This land may be done with program payments under earlier farm farm bill. Participants will not be required to idle decisions ... different under the planted as soon as termination of the CRP contract bills. The 1996 farm bill does require the USDA to land to enroll in the program. new fann bill? is approved by USDA. Participants should contact establish adequate safeguards in the division of A. There will be three important differences. their county FSAoffice to determine whether their payments to protect the interests of tenants. Q. WID I .... to ~ my past ....... First, there will be one enrollment for the entire CRP land is eligible for early termination and to ductiOil FlexlbI~ eo.. 6d ...,.... .... period of 1996 to 2002 rather than the annual en- determine the impact of early termination on their PLANTING FLEXIBILITY RULES HI tenalaate tile ~ ~ aaclieave rollment required under the 1990 farm bill. Second, CRP contract payments. Q. What crops may be planted on IIIW the pros ...... In tile ? farmers and landlords will have greater flexibility to Contract Acreage? A. No. Future PFC payments would be termi- make planting decisions. Third, there is no acreage Q. How will laW Production FlexlbllItJ A. The PFC will allow any crop except fruits nated beginning with the fIScal year in which the setaside required. Participants are allowed to plant Contract payments be calculated? and vegetables to be planted on Contract Acreage. land is withdrawn from the program, but payments their entire farm without having to idle land as in A. Each year from 1996 to 2002, the contract Alfalfaand other forages may be harvested on Con- received in prior years would not be repaid. the past. payments (or agricultural market transition pay- tract Acreage without loss of payments. There are ment) will be calculated for each farm using the no restrictions on haying and grazing on Contract Q. How will PnNIactioa Flexlbllltw ColI- Q. Why do I bave to enroll In a seven. following formula: Acreage. Dry beans, for example, are considered a tract papIeIIIs compare to defIcIeaq year contract In 1996 Instead crt en- Contract Acreage x 0.85 x Farm vegetable. paJ1II8IIts u.... r .... 1990 f__ bill? rolling In the program on an _aaal Program Payment Yield x Annual Contract A. A recent analysis by the Office of Manage- basis? Payment Rate = Annual Production Q. WIIat lIappens If fruits .... vegeta- ment and Budget suggests that program spending A. Congress intended to protect the PFC Flexibility Contract Payment. ..... aN pIaIItecI on Contract Acreage? under this program will be greater than if the target payments from future budget cutS by allowing par- A worksheet is included on page 3 of this A. Farms that have been determined by FSA price program had been continued. Given expected ticipants to enroll in a seven-year contract. By tying supplement to help in estimating PFC payments to have a history of planting fruits and vegetables or market prices for the first two years of this program, the USDA to a contractual obligation, the House for the next seven years. The county FSAoffice producers who have a history of producing fruits deficiency payments would almost certainly have and Senate agriculture commiuees intended that maintains information on the Contract Acreage and vegetables may plant fruits and vegetables on been less than the expected PFC payments. C0n:t- the USDA will be legally obligated to make PFC and Farm Program Payment Yield for each farm. Contract Acreage, but will not receive PFC pay- parisons between the two in future years will ulti- payments. ments for those Contract Acres on which fruits or mately depend on market prices. Q...... will contract acre .. vegetables are planted. Farms or producers without PRODUCTION FLEXIBILITY on my farm be determined? an FSA-established history of planting fruits and Q. Am • required to ...., crop CONTRACTS A. The contract acreage for each farm is equal vegetables will violate their PFC if fruits and vegeta- I.....,.aace to _rollin a ProdtIctIoa Q. Who has to sign a Production to the farm's 1996 established Crop Acreage Base bles are planted on Contract Acreage. Such a viola- Flexlbllltw Contract? Flexibility Coaabad? for each program crop. tion could potentially lead to termination of the A. No. Program participants are not required A. In most cases, both the tenant and the PFC and loss of PFC payments on all acres included to purchase catastrophic risk protection crop insur- landlord must sign the PFC. In some cases, only the Q. How will .... Fann Program Paw. in the PFC. ance (CAT) to receive PFC payments, but partici- tenant is required to do so. Check with the county meat YIeld on IDW ...... be detenaIaecI? pants who do not purchase such crop insurance office of the USDA Farm Service Agency (FSA) to A. Farm Program Payment Yield is equal to Q. Call dty beaas be planted .. must waive their eligibility for emergency crop loss determine who must sign the PFC for your farm. the Program Payment Yield established for the 1995 CoIItract Acreage? assistance on those' crops for which crop insurance crop for each Crop Acreage Base on the farm. The A. No. Dry beans are considered a vegetable was waived. Producers would be eligible for cover- Q. What dees the Production Flexibil- county office of the USDA FSA maintains informa- for program purposes. The only vegetables that can age under the Noninsured Crop Assistance Program Ity Coatract ...... 1... f.......rs aad land. tion on the Contract Acreage and Farm Program be planted on Contract Acreage are mung beans, (NAP). Producers have until May 2 to make crop lords to do? Payment Yield for each farm in the county. dry peas and lentils. Planting of any other fruit or insurance decisions for 1996. A. Farmland enrolled in a PFC must comply vegetable on Contract Acreage will result in a loss of with the conservation plan prepared for the farm Q. I have both a wheat base and a PFC payments. Q. What wllllaappea to Production under the Food Security Act of 1985, the wetland corn base on my fann. AlII I allowed Flexibility Contract papIeIIIs after protection requirements in the 1985 act, and the to .nroll only one base In a PFC? Q. Are there any restrictions on wbat 10021 planting flexibility provisions contained in the 1996 A. Yes. Any portion of any Contract Acreage I caD plant on the rest crt IDW ....... ? A. In 2002, Congress will determine whether farm bill. on a farm may be enrolled in a PFC. However, each A. No. There are no restrictions on what to continue this program, terminate the payments, base on which a participant wants to receive pay- crops may be planted on the non-Contract Acreage or establish other programs in a new farm bill. Q. When do I hav. to sign a Produc- ments must be enrolled during the 1996 sign-up on a farm. tion Flexibility Contract for lIlY fann? period if PFC payments are to be received for that MARKETING LOAN PROGRAMS A. The sign-up period for eligible farmland base during 1996 to 2002. Q. Do I ..... to pIaat a crop on .., Con. Q. Wbat will be tile ..... rates ...... will be from May 20,1996 until July 12, 1996. All tract Acreage to ....... .., ProdIIdIoa ....... ag 1oans7 contracts must be signed during this period, since Q. Do I 1IIav. to k .... IDW f__ In FlexIbility CoIItrad payllNtats? A. Loan rates will be adjusted each year based no enrollments will be permiued after this time. tile program for tile ..... __ A. No. Landlords and tenants will have the on market prices in the previous five years, and pan H I sign a Prodactloll Flexibility flexibility to make planting decisions as they wish, maximum loan rates are established for each crop. Q. How do I know If lIlY land Is Contract In 1996? including the decision to leave land idle. There will The 1996 loan rates will be S258 for wheat, $1.89 I .... Ib.. to enroll In a Prodactloa A. No. Program participants may terminate be no reduction in PFC payments if land is not for corn, S1.81 for grain sorghum, $1.55 for barley, lIt -s:! Flexibility c...b_t? the PFC for all or part of their Contract Acreage at planted. $1.03 for oats, and $4.97 for soybeans. The loan rate - A. Land will be eligible for enrollment in a PFC any time. No repayment of past PFC payments will for other oiIseeds will be 8.91 cents per pound. ifit has a Crop Acreage Base established for 1996 be required, but all future PFC payments will be PFC PAYMENT RULES with the USDA FSAand was enrolled in the acreage terminated. Participants who terminate a contract Q. ea. • landlord pa,....... Q. How will loaDs reduction program or was considered planted by will not be allowed to return to the program at a Ia ,.... n_ If Clll'Nat dIffw Ioaa rate ............ USDAduring at least one crop year from 1991 to later date. teaaat DOt waat to participate .... I. tile past? 1995. Land that was "considered planted" includes Ia • ProdllCtloa FlexlbllH, Coatract? A. As marketing loans, producers will have acreage that was reported to the local USDA FSA Q. WIud ...... _ to tile actIoIa A. Yes. However, the landlord must en roIl the the option of repaying the loans at the lesser of the office but that did not participate in the acreage FlexlblDtw CoIItriKt ..-,.. If I .... land in a PFC during the 1996 sign-up period since loan rate or a repayment rate established by USDA. reduction program. -W ..... 7 it cannot be enrolled at a later date. A. The PFC payments may be transferred ADDnnONALINFORMAnON Q. Is .., ....... llglbie to .. rollin a to the new owner of the farm if the new owner is Q•• s ...... D..at _ PNductIoa Q. How GIll I I~ Productloa Flexlblllt, c.u.t.4W.t If It willing to assume the same terms of the PFC when FleJdblIItJ c..b..., ...,...1IIs? _ tile bill ac. lias I..... Co.................... the land is purchased. A. Yes. PFC payments are limited to $40,000 per tIoII FlexlIIIIn, c:...t...ds7 Prog ? person annually. Check with your county FSA office A. Contact your county office of the USDA A. Land enrolled in a conservation reserve Q. WIIat ... P..... to tile ~ for further details on payment limitation rules. Farm Service Agency for additional details on pro- contract that expired or was voluntarily terminated FIexIbIIItr eo.trad ~_1Ib If I gram provisions. after Jan. 1, 1995 is eligible for enrollment in a PFC. c.... rt ...... to _ ..... _7 Q. WID I to ......, tile M-.f ...... Land enrolled in a conservation reserve contract A. Land enrolled in a PFC must be used for ~llllb tile Pr. d.dIetI Q. Are ....... .., _lIb ...... that was released by the secretary of agriculture agriculture or related activities. PFC payments will FIexIbIDtr c:..... _ .. ......... .. tile __ 7 between the period from January 1995 and the end be terminated on that portion of the Contract Acre- prbs 1IIcre •• 7 A. Yes. Nonrecourse marketing loans will of the 1996 sign-up period must be enrolled in a age that is convened to nonagricultural, commercial A. No. Under the target price program, partici- be available for all contract commodities (wheat PFC during the 1996 sign-up period. Land enrolled or industrial uses. pants had to repay the advance deficiency payments and feed grains) and oilseeds planted on a partici- if market prices increased unexpectedly. Since the PFC pating farm .•